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5 April 2023
Klamath Falls Methamphetamine Dealer Sentenced to Federal PrisonRead the Press Release
MEDFORD, Ore.—A Southern Oregon man was sentenced to federal prison today for possessing and distributing large quantities of methamphetamine in and around Klamath Falls, Oregon.
Raul Sanchez-Lopez, 45, a resident of Klamath Falls, was sentenced to 84 months in federal prison and three years’ supervised release.
According to court documents, in July 2021, law enforcement executed search warrants at two Klamath Falls residences associated with Sanchez-Lopez. Inside one residence, officers located and seized thirteen bags containing approximately 680 grams of methamphetamine, scales, and other drug paraphernalia. Sanchez-Lopez admitted to mixing, weighing, and packaging methamphetamine and distributing it in the Klamath Falls area. In August 2021, he was charged by federal criminal complaint and arrested.
On July 14, 2022, a federal grand jury in Medford returned an indictment charging Sanchez-Lopez with possessing with intent to distribute methamphetamine and, on September 12, 2022, he pleaded guilty to the single charge.
This case was investigated by the U.S. Drug Enforcement Administration (DEA) with assistance from Oregon State Police, Klamath Falls Police Department, and Klamath County Sheriff’s Office. It was prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon.
Justice Department Reaches Multimillion Dollar Civil Settlement in Principle in Sutherland Springs Mass ShootingRead the Press Release
The Justice Department announced today an agreement in principle to settle the civil cases arising out of the tragic November 2017 mass shooting at the First Baptist Church of Sutherland Springs, Texas, that killed 26 worshippers and injured 22 others.
These tentative settlements will resolve claims by more than 75 plaintiffs arising out of the shooting. Plaintiffs’ claims alleged that the Air Force was negligent when it failed to transmit to the National Instant Criminal Background Check System (NICS) information about the shooter that would have prevented him from purchasing guns from a federally licensed firearms dealer. A federal district court in Texas concluded that the United States was liable for damages caused by the shooting. This tentative settlement would resolve the pending appeals.
The agreement in principle would settle all claims for a total of $144.5 million. The settlement agreement has been approved, subject to the plaintiffs’ securing the required court approvals. Under applicable law, a court must approve some aspects of the settlements.
“No words or amount of money can diminish the immense tragedy of the mass shooting in Sutherland Springs,” said Associate Attorney General Vanita Gupta. “Today’s announcement brings the litigation to a close, ending a painful chapter for the victims of this unthinkable crime.”
The NICS plays a critical role in combatting gun violence, and the federal government is always striving to improve the functioning of that system. The department continues to work actively to combat gun violence as part of its comprehensive violent crime reduction strategy.
Justice Department Continues Efforts to Stop Fraudulent Tax PreparersRead the Press Release
The Department of Justice urges taxpayers to choose their return preparers wisely as the April 18 federal tax filing deadline approaches. Unscrupulous preparers who include errors or false information on a tax return could leave a taxpayer open to liability for unpaid taxes, penalties and interest.
“Taxpayers should choose their return preparer wisely and remain vigilant against unscrupulous preparers, who often present clients with refunds that are too good to be true,” said Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “If your preparer asks you to sign a blank return, refuses to sign your return as your return preparer, or is charging you a fee based on the size of your refund, consult the IRS’s website and tips to make sure you are not exposing yourself to trouble.”
“Tax preparers who falsify deductions, or otherwise seek to fraudulently inflate client refunds, face consequences,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “As the Tax Division’s work over the past year demonstrates, our prosecutors have the expertise and resources to identify crooked return preparers and hold them accountable for their criminal conduct.”
The Tax Division works with U.S. Attorneys’ Offices around the country to bring civil and criminal actions against dishonest tax preparers. The division seeks civil injunctions to stop ongoing fraud, civil penalties or disgorgement of ill-gotten proceeds, and criminal penalties. The department’s message to those who prepare fraudulent returns is that they will face serious and lasting consequences.
Criminal convictions against fraudulent preparers obtained by the Tax Division over the last year include:
- In January 2023, Betty Hawkins and Phyllis Ricks, two North Carolina tax preparers, were sentenced to 24 months and 36 months in prison, respectively, for their role in conspiring to file false income tax returns on behalf of clients of the tax return preparation business where they worked. They were ordered to pay approximately $5.2 million in restitution.
- In December 2022, Eunice Salley, a Chicago tax preparer, was sentenced to seven years in prison for filing false income tax returns on behalf of her tax preparation clients seeking more than $1 million in fraudulent refunds. She also failed to report the income received from cashing dozens of pension checks sent to her deceased grandmother. Salley was also ordered to pay $558,396 in restitution.
- In December 2022, King Isaac Umoren, a Las Vegas tax preparer, was sentenced to 13 years and three months for, among other things, preparing and filing with the IRS tax returns for clients that included false deductions and fictitious businesses in an effort to generate larger refunds than the clients were entitled to receive. He was also ordered to pay $9,699,887 in restitution to the United States and other victims of his fraud.
- In August 2022, Guy Telfort, a Fort Lauderdale tax preparer, was sentenced to 13 months in prison for continuing to prepare and file tax returns with the IRS in violation of a federal court order barring him from doing so.
- In March 2022, Fred Pickett, Jr., a Florida tax preparer, was sentenced to 97 months in prison for preparing returns on behalf of clients claiming they owned fictitious businesses that lost tens of thousands of dollars each year. He was also ordered to pay approximately $169,639 in restitution.
Examples of civil injunctions obtained by the Tax Division over the last year include:
- On Jan. 24, 2023, a federal district court in the Southern District of Florida permanently barred Arnold Zio individually and doing business as Platinum Citizens Financial, LLC and FTP Tax Services, from preparing returns for others and from owning or operating a tax return preparation business in the future. The government alleged that Zio prepared tax returns claiming fabricated business income and expenses, as well as various false tax deductions. Additionally, the government alleged that Zio, without authorization, diverted customer refunds into his own bank account and failed to return COVID-19 stimulus funds that were improperly deposited into his account.
- On Oct. 21, 2022, a federal district court in the Eastern District of New York permanently barred Maria Cuervo and her business, Danays Enterprises & Travel, Inc., from operating as tax return preparers. The order required Cuervo to disgorge to the United States $150,000.00 in fees that the government alleged she received as ill-gotten gains for preparing federal tax returns that make grossly incompetent, negligent, reckless, or fraudulent claims.
- On May 12, 2022, a federal district court in the Eastern District of Texas entered an order permanently barring Michelle Denise Johnston from operating a tax return preparation business and preparing federal income tax returns for others. The government’s complaint alleged that Johnston prepared and filed tax returns that understated her customers’ federal income tax liabilities and further alleged that Johnston engaged in a refund-skimming scheme whereby she deducted unauthorized “fees” from inflated refunds unbeknownst to her customers.
The Tax Division has also sought to strip fraudulent preparers of ill-gotten gains and to hold in contempt those who attempt to flout court-ordered restraints on further fraudulent activity. Over the last year, the division has brought these cases to court, including:
- On July 4, 2022, a federal court in the Southern District of Florida found tax-preparer defendants Marcus Alty and Jeanait Mathurin in contempt for violating an injunction that bars them from preparing returns for others. The court also held in contempt J and M Tax Services, LLC, a return preparation business that Alty and Mathurin created post-injunction to continue their return preparation business. The court ordered Alty, Mathurin, and J and M Tax Services to disgorge nearly $650,000 in ill-gotten gains and to pay $18,000 in costs to the government. The court also sanctioned Alty, Mathurin, and J and M Tax Services of the government’s attorneys’ fees of over $14,000.
- On Apr. 12, 2022, a federal court in the Eastern District of Michigan required Laron Stroud and Raheen Stroud to pay over $120,000 in civil contempt sanctions for their violations of a 2016 permanent injunction prohibiting them from preparing tax returns or assisting in or directing the preparation or filing of tax returns. The amount of the sanctions represents the total tax preparation fees received by the Strouds (and those they assisted) to file returns after the date of the injunction.
- On Sept. 29, 2022, a federal court in the Southern District of Florida required Nate Dameus to pay $213,500 of ill-gotten fees for violating the court’s September 2021 order that permanently barred Dameus from acting as a return preparer. The court’s order also requires Dameus to reimburse the government approximately $10,000 for the costs incurred to investigate his violations and enforce the injunction.
Shady tax return preparers remain a concern of the IRS, which recently warned taxpayers about unscrupulous tax return preparers as part of the IRS’s Dirty Dozen series. The Tax Division reminds taxpayers that the IRS has information, tips, and reminders on its site for choosing a tax preparer carefully (Choosing a Tax Professional and How to Choose a Tax Return Preparer) and has launched a free directory of credentialed federal tax preparers. The IRS also offers taxpayers tips to protect their identities and wallets when filing their taxes.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $73,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Tax Division has obtained civil injunctions and criminal convictions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jefferson County Man Admits Possessing Pipe Bombs, MethamphetamineRead the Press Release
ST. LOUIS – A man from Jefferson County, Missouri on Wednesday admitted possessing two pipe bombs and methamphetamine.
Douglas Moore, 47, of Byrnes Mill, was stopped by a deputy with the Jefferson County Sheriff's Department on May 11,2021, while driving a 2004 Suzuki Aerio with expired license plates. He had an active warrant. After his arrest, the deputy found the pipe bombs and methamphetamine in the car.
Moore was on probation at the time and has pending charges in Ste. Genevieve County and Jefferson County circuit courts.
Moore pleaded guilty Wednesday in front of U.S. District Judge Ronnie L. White to one felony count of possession of an unregistered destructive device.
Moore is scheduled to be sentenced in July. The crime carries a maximum penalty of 10 years in prison, a $10,000 fine, or both.
The case was investigated by the Jefferson County Sheriff’s Department, the St. Louis Regional Bomb and Arson Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Matthew Martin is prosecuting the case.
Great Falls felon sentenced to more than five years in prison for possessing firearmRead the Press Release
BILLINGS — A Great Falls man with a felony conviction was sentenced today to five years and 10 months in prison, to be followed by three years of supervised release, for illegally possessing a firearm, U.S. Attorney Jesse Laslovich said.
Raymond Lee Toulouse, 37, pleaded guilty in November 2022 to prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that in May 2022, Billings police officers checked on a suspicious vehicle and found Toulouse under the influence of some kind of substance and in possession of a loaded 9 mm semi-automatic pistol that had been stolen in Butte. At the time, Toulouse had absconded from federal supervision in Great Falls and was prohibited from possessing firearms after having been convicted of a methamphetamine trafficking crime in U.S. District Court.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Grand Jury Returns Two IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Madison Man Indicted on Charge of Firebombing Building
Hridindu Sankar Roychowdhury, 29, Madison, Wisconsin, is charged with attempting to cause damage to a building by means of fire or an explosive. The indictment alleges that he did so on May 8, 2022. Roychowdhury was previously charged with this offense in a complaint filed in U.S. District Court for the Western District of Wisconsin on March 27, 2023. Federal law requires that felony offenses charged by complaint be presented to a grand jury for indictment.
Roychowdhury was arrested in Boston, Massachusetts at Logan International Airport on March 28. He made an initial appearance in federal court in Boston that day. A detention hearing was held on March 30, and he was ordered held in custody. A date for his appearance in federal court in Madison has not been set.
If convicted, Roychowdhury faces a mandatory minimum penalty of five years and a maximum of 20 years in prison. The charge against him is the result of an investigation by the Madison Police Department; Wisconsin State Capitol Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation’s Joint Terrorism Task Force; Homeland Security Investigations; Dane County Sheriff’s Office; with the assistance of the FBI Boston Field Office; Boston Police Department; Massachusetts State Police; U.S. Coast Guard; Federal Air Marshal Service, and Transportation Security Administration.
Assistant U.S. Attorney Elizabeth Altman of the Western District of Wisconsin and Trial Attorney Justin Sher of the Counterterrorism Section of the U.S. Department of Justice’s National Security Division are handling the prosecution.
Rock County Man Charged with Robbing Madison Bank
Richard L. Chapman, 65, Janesville, Wisconsin, is charged with bank robbery. The indictment alleges that on February 3, 2023, he robbed the Park Bank, located on East Main Street in Madison, Wisconsin.
If convicted, Chapman faces a maximum penalty of 20 years in prison. The charge against him is the result of an investigation by the Madison Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Geneva Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE –Chad Billington, 38 years old, of Geneva, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to distribution of methamphetamine, announced United States Attorney Clifford D. Johnson.
Billington was sentenced to 120 months in prison followed by 5 years of supervised release.
According to documents in the case, Billington engaged in the sale of methamphetamine to law enforcement on several occasions during November and December of 2020. The methamphetamine obtained from Billington had a purity level of 97 percent or higher.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Allen County Sheriff’s Department and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Brent A. Ecenbarger.
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Genesis Market Disrupted in International Cyber OperationRead the Press Release
U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin joined the Attorney General and other Justice Department officials in announcing a coordinated international operation that resulted in the dismantlement of Genesis Market, a criminal marketplace accessible on the dark web and clear web that advertised and sold packages of account access credentials – such as usernames and passwords for email, bank accounts, and social media – that had been stolen from malware-infected computers around the world.
“Working across 45 of our FBI Field Offices and alongside our international partners, the Justice Department has launched an unprecedented takedown of a major criminal marketplace that enabled cybercriminals to victimize individuals, businesses, and governments around the world,” said Attorney General Merrick B. Garland. “Our seizure of Genesis Market should serve as a warning to cybercriminals who operate or use these criminal marketplaces: the Justice Department and our international partners will shut down your illegal activities, find you, and bring you to justice.”
“Yesterday, the Department of Justice and its partners dismantled the Genesis Market and arrested many of its users around the world,” said Deputy Attorney General Lisa O. Monaco. “Genesis falsely promised a new age of anonymity and impunity, but in the end only provided a new way for the Department to identify, locate, and arrest on-line criminals. The Department of Justice is shining a light on the internet’s darkest corners – in the last year alone, our agents, prosecutors, and partners have dismantled the darknet’s largest marketplaces – Hydra Market, BreachForums, and now Genesis. Each takedown is yet another blow to the cybercrime ecosystem.”
Since its inception in March 2018, Genesis Market has offered access to data stolen from over 1.5 million compromised computers around the world containing over 80 million account access credentials. Account access credentials advertised for sale on Genesis Market included those connected to the financial sector, critical infrastructure, and federal, state, and local government agencies. Genesis Market was also one of the most prolific initial access brokers (IABs) in the cybercrime world. IABs attract criminals looking to easily infiltrate a victim’s computer system. Genesis Market offered for sale the type of access sought by ransomware actors to attack computer networks in the United States and around the world and published private-sector reports indicate that they indeed were used by ransomware actors to attack such systems.
Genesis Market was user-friendly, providing users with the ability to search for stolen access credentials based on location and/or account type (e.g., banking, social media, email, etc.). In addition to access credentials, Genesis Market obtained and sold device “fingerprints,” which are unique combinations of device identifiers and browser cookies that circumvent anti-fraud detection systems used by many websites. The combination of stolen access credentials, fingerprints, and cookies allowed purchasers to assume the identity of the victim by tricking third party websites into thinking the Genesis Market user was the actual owner of the account.
Genesis Market users were located all over the world. Federal law enforcement has worked to identify prolific users of Genesis Market who purchased and used stolen access credentials to commit fraud and other cybercrimes. This effort resulted in hundreds of leads being sent to FBI field offices throughout the United States, as well as to foreign law enforcement partners. Further, as part of this operation, law enforcement seized, pursuant to court order, 11 domain names used to support Genesis Market’s infrastructure.
“The operation being announced today is the direct result of the hard work, dedication, and exceptional collaborative efforts of the FBI and its partners around the globe,” stated U.S. Attorney Haanstad. “Along with investigative partners and our Justice Department colleagues, my office remains committed to using all available tools to protect individuals from cybercriminals like those who operate these types of online marketplaces.”
“Today’s takedown of Genesis Market is a demonstration of the FBI’s commitment to disrupting and dismantling key services used by criminals to facilitate cybercrime,” said FBI Director Christopher Wray. “The work in this case is a great example of the FBI’s ability to leverage our technical capabilities and work shoulder-to-shoulder with our international partners to take away the tools cyber criminals rely on to victimize people all across the world.”
As alleged in a domain seizure warrant authorized by the U.S. District Court for the Eastern District of Wisconsin, Genesis Market offered for sale victim credentials associated with the White House, Department of State, Justice Department, IRS, Department of Energy, U.S. Postal Service, National Aeronautics and Space Administration, and the Department of Defense.
The FBI Milwaukee Field Office investigated the case, with assistance from the U.K. National Crime Agency, Italy’s Polizia de Stato, Police of Denmark, Australian Federal Police, Royal Canadian Mounted Police, Canada’s Sûreté du Québec, Romanian Police, French Police Cybercrime Central Bureau, Spain’s Policia Nacional, Spain’s Guardia Civil, Germany’s Federal Criminal Police Service, Swedish Police Authority, Poland’s Central Bureau for Combating Cybercrime, Dutch National Police, Finland’s National Bureau of Investigation, Switzerland’s Office of the Attorney General, Swiss Federal Police, Estonia’s Prosecutor General’s Office, Iceland’s Metropolitan Police, and Eurojust.
The department appreciates the assistance provided by authorities in Bulgaria and Latvia in response to Mutual Legal Assistance requests.
Trial Attorneys Benjamin Proctor and Jessica Peck of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Farris Martini for the Eastern District of Wisconsin are handling the investigation. The Justice Department’s Office of International Affairs provided significant assistance.
Victim credentials obtained over the course of the investigation have been provided to the website Have I Been Pwned, which is a free resource for people to quickly assess whether their access credentials have been compromised (or “pwned”) in a data breach or other activity. Victims can visit HaveIBeenPwned.com to see whether their credentials were compromised by Genesis Market so that they can know whether to change or modify passwords and other authentication credentials that may have been compromised.
If you have been active on Genesis Market, in contact with Genesis Market administrators, or have been a victim and have a need to report, please email the FBI at [email protected].
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For Additional Information Contact:
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414-297-1700
Frederick County Sheriff and Gun Dealer Indicted for Scheme to Illegally Acquire MachinegunsRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Charles Austin Jenkins, age 66, of Thurmont, Maryland, and Robert Justin Krop, age 36, of Frederick, Maryland, with conspiracy and false statements in order to acquire machineguns. Krop is also charged with illegal possession of machineguns. No court appearance is scheduled for the defendants at this time.
The indictment was announced by Erek L. Barron, United States Attorney for the District of Maryland and Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
As detailed in the indictment, Charles Jenkins has been the Sheriff of Frederick County since his election in 2006 and was most recently re-elected in 2022. Robert Krop is the principal owner and operator of firearms-related businesses in Frederick County. Krop and his businesses held up to two Federal Firearms Licenses (“FFLs”) that allowed Krop and the business, under certain circumstances, to possess and deal in machineguns.
The six-count indictment alleges that from August 2015 to May 2022, Jenkins and Krop conspired to unlawfully purchase machineguns and falsified multiple documents on the Frederick County Sheriff’s Office letterhead requesting machineguns for evaluation and demonstration to the Frederick County Sheriff’s Office. Krop allegedly drafted these documents for Jenkins’ signature. According to the indictment, Jenkins and Krop knew that there would not be a demonstration of the machineguns to the Sheriff’s Office and that the machineguns were intended for rental to Krop’s customers. Krop also allegedly illegally possessed seven machineguns. The indictment further alleges that Krop’s business offered political support to Jenkins in recognition of his support for the business.
If convicted, Jenkins and Krop face a maximum sentence of five years in federal prison for the conspiracy, for false statements in records maintained by a federal firearms licensee and for false statements to federal law enforcement. If convicted, Krop also faces a maximum sentence of 10 years in federal prison for unlawful possession of a machinegun.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the ATF for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Christine Goo and Leo Wise, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Four Tampa Bay Area Tax Preparers Plead GuiltyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Jamica Nelms, Capriesha Cummings, Camille Harper, and Ashley Flournoy have pleaded guilty to conspiracy to commit tax fraud and aiding or assisting in the preparation of false income tax return documents. Each faces a maximum penalty of eight years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, from January 2017 through April 2019, Nelms, Cummings, Flournoy, and Harper were income tax return preparers at Business #1 in St. Petersburg. They conspired to defraud the United States by preparing false income tax returns for numerous clients of Business #1 in order for the Internal Revenue Service (IRS) to issue tax refunds in excess of what the clients were entitled to receive. In doing so, Nelms, Cummings, Flournoy, and Harper documented on Schedule C forms they prepared that clients owned fictitious businesses which maximized the clients’ ability to claim the Earned Income Credit on their tax returns and thereby increase their tax refunds. They also fraudulently reported that clients were entitled to claim credits for fuel taxes or education expenses paid to make it appear that their clients were entitled to tax refunds.
“The defendants’ admissions today stress the importance of the taxpayer acting as the first line of defense against unscrupulous preparers and their scams,” said IRS-CI Tampa Special Agent in Charge Brian Payne. “With the filing season deadline just a week away, this investigation is a timely reminder about why the taxpayer must do their due diligence when selecting a preparer because ultimately you are responsible for your return.”
This case was investigated by Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Greg Pizzo, Jay Trezevant, and Maria Guzman.
Fort Wayne Woman Sentenced to 69 Months in PrisonRead the Press Release
FORT WAYNE –Kelly Krieger, 38 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to aiding and abetting armed bank robbery, announced United States Attorney Clifford D. Johnson.
Krieger was sentenced to 69 months in prison, 2 years of supervised release and ordered to pay $202,184 in restitution to the victim bank.
According to documents in the case, a bank in Fort Wayne was robbed on Christmas Eve 2019 by an individual armed with a deadly weapon, later identified later as Horia Malutan.
During their investigation, law Enforcement determined that one of the bank employees, the branch manager, Kelly Krieger, was involved in the robbery. Krieger admitted to law enforcement that she and Malutan planned the robbery. Krieger said that she told Malutan where to stand before coming into the bank, what words to use once inside the bank and how to exit the bank.
Co-defendant Malutan pled guilty to the armed bank robbery. He was sentenced in May, 2022, to 57 months imprisonment and ordered to pay restitution to the victim bank.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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Former Philadelphia City Treasurer Sentenced to Prison for Immigration Fraud and Failure to File TaxesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Christian Dunbar, 42, of Philadelphia, PA, the former Philadelphia City Treasurer, was sentenced to six months in prison, 3 years of supervised release, a $10,000 fine, and $33,202.00 in restitution to the IRS by United States District Court Judge Cynthia M. Rufe. His U.S. citizenship will also be revoked. As part of his application to become a U.S. citizen, Dunbar made multiple false statements, submitted altered citizenship papers, and failed to file federal tax returns in three separate tax years.
In May 2021, the defendant was charged by Superseding Indictment with multiple counts of filing a false income tax return and failure to file tax returns. Earlier, in September 2020, Dunbar was charged in a 14-count Indictment, charging embezzlement by a bank employee, procurement of naturalization through a false statement, procurement of naturalization unlawfully, obtaining false citizenship papers, and making false statements in support of naturalization.
The defendant previously admitted to procuring U.S. citizenship fraudulently by providing false information about where and with whom he was living, where his child was residing, and submitting a false lease and a false W-2 tax form to U.S. Citizenship and Immigration Services. Further, Dunbar admitted to not filing his personal income tax returns for tax years 2015, 2016, and 2019 (during the last of which he was serving as the Philadelphia City Treasurer).
“Christian Dunbar’s actions in seeking United States citizenship and serving as the City of Philadelphia’s Treasurer betrayed the ideals inherent in the precious privilege of U.S. citizenship, and the duty he owed to Philadelphians to oversee the City’s finances,” said U.S. Attorney Romero. “Our Office will continue to work with our law enforcement partners to hold public officials accountable.”
“As city treasurer, Christian Dunbar held a key position of public trust,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Little did the people of Philadelphia realize that his U.S. citizenship was fraudulently obtained and he'd been dodging doing his taxes. Philly deserves better and the FBI will continue to work on behalf of the public to hold corrupt officials like Dunbar accountable.”
“Mr. Dunbar’s conscious decision to violate federal tax laws has cost him his freedom,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “With the end of the tax filing season fast approaching, this should serve as another reminder of the importance for filing an accurate tax return. Failure to do so could lead to similar consequences.”
“Today’s sentencing of Mr. Dunbar illustrates HSI’s commitment to ensuring that our immigration system is void of fraud and deception, particularly from those entrusted with public office,” said Special Agent in Charge of HSI Philadelphia William S. Walker. “HSI will continue to tirelessly work with our partners in the U.S. Attorney’s Office, FBI, and IRS-CI to prosecute and to revoke any fraudulently obtained citizenship from those committing federal crimes and violating the trust of the people of Philadelphia.”
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigations, and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Former Keolis Assistant Chief Engineer and Electrical Company General Manager Charged with Defrauding Keolis Commuter ServicesRead the Press Release
BOSTON – The former Assistant Chief Engineer of Facilities for Keolis Commuter Services (Keolis) and the former general manager of a Massachusetts-based electrical company have been charged in a scheme to defraud Keolis of over $8 million.
John P. Pigsley, 58, was indicted by a federal grand jury on five counts of wire fraud, one count of conspiracy to commit wire fraud, six counts of tax evasion, one count of filing a false tax return and four counts of structuring financial transactions to evade reporting requirements. Pigsley was arrested this morning and will appear in federal court in Boston at 1:45 p.m. today.
John Rafferty, 69, of Hale’s Location, N.H., has been charged by an Information and has agreed to plead guilty to one count of conspiracy to commit wire fraud.
“There is perhaps no single state agency that impacts the daily lives of the millions of people who live and work in the greater Boston area more than the MBTA. Over the last few years, T ridership has had to endure its fair share of both acute and chronic issues. Today, unfortunately, we add fraud to that list. The criminal conduct alleged here specifically involves the Commuter Rail – the entity Keolis operates for the T – and two men who lied to, cheated and stole from Keolis,” said United States Attorney Rachael S. Rollins. “We allege that the defendants stole over $8 million from Keolis, and that Pigsley did so while an employee of the organization. The $8 million they stole could have been used to ensure significantly safer, faster and more reliable transportation for riders. Instead, these men lined their pockets for their own selfish gain. It is my hope that this prosecution holds these alleged criminals accountable.”
“These men are accused of crossing the line from fixing our broken rail system to defrauding it when they devised a plan to pad their paychecks by stealing more than $8 million that was meant for repairs and routine maintenance at a time when overall needs on the commuter rail are so deep, funding sources are so strained, and the need for better service is so crucial,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Their alleged actions demonstrate both a disdain for the rule of law, and a clear-cut case of greed. Today’s arrests should be a warning to others that the FBI and our partners are committed to investigating and bringing to justice anyone who abuses their positions of trust to fraudulently siphon off public funds.”
"The serious accusations against John Pigsley are particularly troubling as he breached the trust he was given as a senior lead with Keolis,” said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston. “These allegations represent an egregious breach of the trust that had been placed in Keolis through its operation of the MBTA. The Special Agents of IRS Criminal Investigation are committed to protecting the integrity of our system of taxation by investigating individuals who violate the tax laws."
“Today’s announcement should serve as notice that we are committed to thwarting and unravelling complex fraud schemes involving millions of taxpayer dollars used to maintain MBTA commuter rail systems,” said U.S. Department of Transportation, Office of Inspector General’s Special Agent-in-Charge Christopher A. Scharf. “We will continue working with our Federal and prosecutorial partners to pursue those who deceitfully manipulate business contracting and accounting practices for personal gain.”
According to the charging documents, Keolis has operated the MBTA commuter rail system since 2014 under an annual contract of $291–$349 million. Between 2014 and November 2021, Pigsley was employed as Keolis’ Assistant Chief Engineer of Facilities and was responsible for the maintenance of MBTA Commuter Rail Facilities and their engineering operations, including handling corrective repair and project management for assets and maintenance and ordering and approving his subordinates’ orders of electrical supplies from outside vendors for Keolis. Pigsley also operated a separate construction company called Pigman Group. Rafferty was the general manager of LJ Electric, Inc., an electrical supply vendor to which Keolis paid over $17 million between 2014 through 2021.
Between July 2014 and November 2021, Pigsley and Rafferty allegedly defrauded Keolis of over $4 million through a false LJ Electric invoicing scheme. Specifically, it is alleged that Rafferty purchased vehicles, construction equipment, construction supplies and other items for Pigsley, Pigman Group and others, and Pigsley directed Rafferty to recover the cost of these items by submitting false and fraudulent LJ Electric invoices to Keolis. The fraudulent LJ Electric invoices included a percentage profit that Rafferty allegedly kept for himself. It is further alleged that Rafferty spent more than $3 million on items for Pigsley and others – including: at least nine trucks; construction equipment including at least seven Bobcat machines; at least $1 million in home building supplies and services; and a $54,000 camper– for which Keolis paid Rafferty more than $4 million based on false LJ Electric invoices.
In addition to the false invoicing scheme, it is alleged that Pigsley directed Keolis to purchase copper wire which he then stole and sold to scrap metal businesses, keeping the cash proceeds for himself. To conceal the theft, it is alleged that Pigsley personally picked up the copper wire orders from vendors or had the orders delivered to his Beverly home. Pigsley allegedly then personally transported the wire to scrap yards where he traded it for thousands of dollars in cash several times a month and sometimes more than once a day. According to the charging documents, Pigsley obtained more than $4.5 million in cash by stealing and scrapping the copper wire.
It is further alleged that Pigsley defrauded the IRS by failing to withhold and pay federal income taxes on income he received from the LJ Electric invoicing scheme and from scrapping copper wire. Pigsley also allegedly filed a false tax return for the tax year 2016. Additionally, Pigsley is alleged to have deposited over $1.9 million in cash into his bank accounts between 2014 and 2021, and to have structured some of those deposits to evade currency transaction reporting requirements applicable to financial institutions.
With respect to the Indictment charging Pigsley, the charges of wire fraud and wire fraud conspiracy provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of filing a false tax return provides for a sentence of up to three years in prison, up to one year of supervised release and a fine of up to $250,000. The charge of aggravated structuring provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000.
With respect to the Information filed against Rafferty, the charge of conspiracy to commit wire fraud provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000.
Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, FBI SAC Bonavolonta, IRS-CI SAC Simpson, and DOT-OIG SAC Scharf made the announcement today. Assistant U.S. Attorneys Kristina E. Barclay and Elysa Q. Wan of Rollins’ Public Corruption & Special Prosecutions Unit are prosecuting the cases.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Federal Inmate Pleads Guilty to Involuntary ManslaughterRead the Press Release
Jackson, Mississippi – A former federal inmate pled guilty to involuntary manslaughter, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
Michael Phillips, 47, a citizen of Jamaica, pled guilty on April 4, 2023 in U.S. District Court in Jackson.
According to court documents and statements made in court, on or about July 2, 2017, Phillips killed another inmate during a fight in a prison housing unit at the Federal Correctional Complex in Yazoo City, Mississippi, where both Phillips and the other inmate were incarcerated. During the course of the fight, Phillips threw a punch causing the other inmate to fall backwards into a metal locker. The other inmate hit the back of his head on the locker, and he died as a result of his injuries.
Phillips will be sentenced on July 7, 2023 and faces a maximum penalty of eight years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Federal Bureau of Investigation.
Special Assistant United States Attorney Joshua Robles and Assistant United States Attorney Kimberly Purdie prosecuted the case.
Former City of Miami Police Officer Pleads Guilty to COVID-19 Relief FraudRead the Press Release
MIAMI – Gregory Dennis, 45, a former police officer with the City of Miami Police Department, has pled guilty to wire fraud in connection with two fraudulent applications for Paycheck Protection Program (PPP) loans he submitted to a Small Business Administration (SBA) approved PPP lender while he was still employed with the City of Miami Police Department.
On March 28, 2021, Dennis submitted a false and fraudulent PPP loan application claiming to be a sole proprietor operating a cleaning service. The PPP loan application falsely represented his business’ 2020 gross income and in support of the application, he submitted a false and fraudulent IRS Form 1040, including a Schedule C, for tax year 2020. As a result of the false and fraudulent application, Dennis obtained a $20,833 PPP loan from a California-based SBA approved PPP lender.
On April 10, 2021, Dennis submitted a second false and fraudulent PPP loan application, this time seeking a second draw PPP loan. Once again, Dennis claimed to be a sole proprietor operating a cleaning service, and this second draw application also fraudulently represented his business’ 2020 gross income. This second draw application also was supported by the same false and fraudulent 2020 IRS Form 1040 and Schedule C that was used to fraudulently obtain the first PPP loan. Again, the fraudulent application was approved successfully, and Dennis received an additional $20,833 in second draw PPP loan proceeds from the same California-based lender.
Dennis is scheduled for sentencing on June 13, at 1:15 p.m. before U.S. District Judge William P. Dimitrouleas in Fort Lauderdale, where he faces a possible maximum sentence of up to 20 years in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA-OIG), Investigations Division’s Eastern Region, announced the guilty plea.
The FBI’s Miami Area Corruption Task Force, which includes task force officers from the City of Miami Police Department’s Internal Affairs Section, and SBA-OIG investigated the case. U.S. Attorney Lapointe thanked the City of Miami Police Department and the Miami-Dade County Office of Inspector General for their invaluable assistance with this case. Assistant U.S. Attorney Edward N. Stamm is prosecuting the case. Assistant U.S. Attorney G. Raemy Charest-Turken is handling asset forfeiture.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-60063.
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Former City Treasurer in Alaska Indicted for Wire Fraud, Money Laundering, and Tax EvasionRead the Press Release
A federal grand jury in Anchorage returned an indictment on March 21, 2023, charging an Alaska man with wire fraud, money laundering and tax evasion.
According to the indictment, from 2015 to 2022, Jess George Adams of Willow, Alaska, embezzled a total of more than $1.16 million from the City of Houston, Alaska, and from a Wasilla-based equipment company.
The indictment alleges that from 2015 through 2018, Adams was the Treasurer for the City of Houston, entrusted with bookkeeping responsibilities and administrative access to the City’s accounting records and software. Adams allegedly used this access to direct electronic transfers from the City’s bank account to a personal account in his name, maintained by Adams to hide the embezzled funds. It is further alleged that Adams used fictitious entries in the City’s accounting software to make it appear as though these payments were made for legitimate business expenses.
In October 2018, the City of Houston allegedly placed Adams on administrative leave, and he resigned his position in November 2018. A year later, Adams allegedly was employed as a bookkeeper by an equipment company, where he exercised control over the company’s accounting records and software. The indictment charges that, using this access, Adams directed electronic transfers from the company’s bank account to other personal accounts that Adams opened in his name to hide the embezzled money. To conceal his activity, Adams allegedly used fictitious entries in the company’s accounting software to make it appear as though these funds were transferred for the payment of legitimate business expenses.
Adams allegedly laundered the embezzled money he obtained from the equipment company by making several wire transfers from his personal bank account to other accounts, each at a value greater than $10,000.
The indictment further charges that in another attempt to conceal his embezzlement and evade the assessment of income taxes, Adams filed false individual income tax returns for tax years 2016 through 2021, which did not disclose the additional income he diverted to himself. According to the indictment, Adams was a former seasonal tax return preparer for a national tax advisory company.
Adams is scheduled to make his initial court appearance today before U.S. Magistrate Judge Kyle F. Reardon of the U.S. District Court for the District of Alaska. If convicted, he faces a maximum penalty of 20 years in prison for each wire fraud count, 10 years in prison for each money laundering count, 5 years in prison for each tax evasion count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney S. Lane Tucker for the District of Alaska made the announcement.
IRS-Criminal Investigation is investigating the case with substantial assistance from the Alaska State Troopers.
Trial Attorney Boris Bourget of the Justice Department’s Tax Division and Assistant U.S. Attorney George Tran of the District of Alaska are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former City Treasurer Indicted for Wire Fraud, Money Laundering, and Tax EvasionRead the Press Release
ANCHORAGE – A former city treasurer was arrested this week after a federal grand jury returned an indictment charging him with wire fraud, money laundering, and tax evasion.
The indictment charges that from 2015 to 2022, Jess George Adams of Willow embezzled more than $1.16 million from the City of Houston in Alaska and from a Wasilla-based equipment company.
The indictment alleges that from 2015 through 2018, Adams was the Treasurer for the City of Houston, entrusted with bookkeeping responsibilities and administrative access to the City’s accounting records and software. Adams allegedly used this access to direct electronic transfers of funds from the City’s bank account to his personal account, maintained by Adams to hide the embezzled funds. It is further alleged that Adams used fictitious entries in the City’s accounting software to make it appear as though these payments were made for legitimate business expenses.
In October 2018, the City of Houston allegedly placed Adams on administrative leave, and he resigned his position in November 2018. A year later, Adams allegedly was employed as a bookkeeper by an equipment company, where he exercised control over the company’s accounting records and software. The indictment charges that, using this access, Adams directed electronic transfers of funds from the company’s bank account to his other personal accounts at multiple banks, maintained by Adams to hide the embezzled funds. To conceal his activity, Adams allegedly used fictitious entries in the company’s accounting software to make it appear as though these funds were transferred for the payment of legitimate business expenses.
Adams allegedly laundered the embezzled money he obtained from the equipment company by making several wire transfers from his personal bank account to other accounts, each at a value greater than $10,000.
The indictment further charges that in another attempt to conceal his embezzlement and evade the assessment of income taxes, Adams filed false individual income tax returns for tax years 2016 through 2021, which did not disclose the additional income he diverted to himself. According to the indictment, Adams was a former seasonal tax return preparer for a national tax advisory company.
Adams is scheduled to make his initial court appearance today before U.S. Magistrate Judge Kyle F. Reardon of the U.S. District Court for the District of Alaska. If convicted, he faces a maximum penalty of 20 years in prison for each wire fraud count, 10 years in prison for each money laundering count, 5 years in prison for each tax evasion count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker for the District of Alaska and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case with substantial assistance from the Alaska State Troopers.
Assistant U.S. Attorney George Tran for the District of Alaska and Trial Attorney Boris Bourget of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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usao/ak/23-024
Final defendant in Skagit County drug arrest sentenced to 72 months in prisonRead the Press Release
Seattle – A 39-year-old Mount Vernon, Washington, resident was sentenced today in U.S. District Court in Seattle to 72 months in prison for possessing dangerous drugs and guns on two separate occasions, announced U.S. Attorney Nick Brown. Steven Lopez Ruiz has been in custody since his arrest on March 14, 2022.
According to records filed in the case, Ruiz was first encountered by law enforcement on March 1, 2022, in the driver’s seat of a car that contained fentanyl laced pills, methamphetamine, and two firearms. Just two weeks later, on March 14, 2022, law enforcement stopped a car in which Ruiz was riding. Ruiz attempted to run from police but was apprehended. On that occasion, he possessed over 1,000 fentanyl pills, as well as heroin.
Ruiz was prosecuted along with the car’s driver, Santos Gutierrez-Fosella and a second passenger, Robert Johnny. Gutierrez-Fosella was held responsible for some 89,000 fentanyl pills in the car and was sentenced to ten years in prison. In January 2023, Robert Johnny was sentenced to six years in prison for his role in the case.
In asking for a seven-year prison sentence, Assistant United States Attorney Miriam Hinman wrote to the court, “Ruiz has committed serious offenses that pose a danger to the public. He has received substantial sentences for prior drug-trafficking and violence, and yet he was not deterred from engaging in the instant offense. He also attempted to flee from law enforcement in this case. Ruiz’s history of drug-trafficking, unlawful firearm possession, and physical violence, and his lack of respect for the law and for law enforcement, require a significant prison sentence in order to achieve deterrence and protect the public.”
The case was investigated by the Skagit County Interlocal Drug Enforcement Unit, Homeland Security Investigations (HSI), the Bureau of Indian Affairs, the Swinomish Police Department, and the Mount Vernon Police Department.
The case was prosecuted by Assistant United States Attorney Miriam Hinman.
Final Defendant Sentenced for Million-Dollar Credit Card Fraud Scheme Involving Arlington Coffee ShopRead the Press Release
ALEXANDRIA, Va. – Two Washington D.C. women and a Clinton, Maryland, man were sentenced for their roles in a conspiracy to commit bank fraud.
According to court documents, from at least May 2016 until Oct. 2016, Adiam Berhane, 50, conspired to carry out a fraud scheme with Tiffany Younger, 51, and Keith Lemons, 56, involving stolen credit card information that was used to purchase gift cards, expensive luxury goods, and other items from local retail stores. Berhane would obtain stolen identities of residents of the Washington, D.C. metropolitan area and elsewhere for the creation of fraudulent credit cards. The fraud caused over hundreds of thousands of dollars in losses to area retailers and financial institutions.
Younger and Lemons were recruited by Berhane to make purchases using fraudulent credit cards. As part of the scheme, items purchased with victims’ credit card information would sometimes be returned for refunds to bank accounts that Berhane controlled. In addition to fraudulently purchasing items and receiving fraudulent refund proceeds to her bank accounts, Berhane used fraudulent payment cards to purchase gift cards at retail stores which were then redeemed at her business, Caffe Aficionado, in Arlington. More than a third of Caffe Aficionado’s income from June 2013 to July 2016 came from a pattern of highly unusual redemptions of American Express gift cards, with the pattern beginning several months before Caffe Aficionado opened in approximately October 2013.
Following a December 2022 jury trial, Berhane was convicted of multiple charges of conspiracy to commit bank fraud, bank fraud, trafficking in unauthorized access devices, aggravated identity theft, unlawful possession of 15 or more access devices, and possession of access device-making equipment with intent to defraud.
On March 15, Berhane was sentenced to 10 years in prison for her role in the conspiracy. On March 15, Lemons was sentenced to time served and six months of home confinement for his role. On April 5, Younger was sentenced to 2 years of probation.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Andy Penn, Arlington County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.
This case was prosecuted with the assistance of the Montgomery County Police Department, the FBI Cyber Task Force, the U.S. Postal Office of the Inspector General, the U.S. Secret Service, and the U.S. Capitol Police.
Assistant U.S. Attorneys Bibeane Metsch and Jonathan S. Keim prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:20-cr-25, 1:22-cr-9, and 1:21-cr-27.
Federal Court Orders Forfeiture of $826K in Funds Used in Attempt to Export Dual-Use High Precision Jig Grinder to RussiaRead the Press Release
An investigation into the attempted smuggling of a dual-use export-controlled item to Russia in violation of United States export laws and regulations has resulted in the forfeiture of approximately $826,000.
U.S. Attorney Vanessa Roberts Avery; Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; Andrew Adams, Director of Task Force KleptoCapture; Acting Special Agent in Charge Michael J. Krol of Homeland Security Investigations (HSI), New England; Special Agent in Charge Rashel D. Assouri of the U.S. Department of Commerce’s Office of Export Enforcement, Boston; and Special Agent in Charge Robert Fuller of the FBI New Haven Division made the announcement.
As alleged in court documents and statements made in court, beginning in 2018, operators of a Latvia-based corporation conspired with the operator of By Trade OU, an Estonia-based company, as well as individuals in Russia and a Russia-based company, to violate U.S. export laws and regulations and smuggle a jig grinder that was manufactured in Connecticut to Russia. A jig grinder is a high-precision grinding machine system that does not require a license to export to European Union countries, but does require a license for export and reexport to Russia because of its potential application in nuclear proliferation and defense programs. At no time did the defendants apply for, receive or possess a license of authorization from the U.S. Department of Commerce to export or reexport the jig grinder to Russia, as required by the Export Control Reform Act of 2018 and the Export Administration Regulations (“EAR”), which restrict the export of items that could make a significant contribution to the military potential of other nations or that could be detrimental to U.S. foreign policy and national security.
U.S. authorities, working with Latvian authorities, intercepted the jig grinder in Riga, Latvia, before it was to be shipped to Russia.
Several individuals and companies involved in this alleged scheme have been charged by indictment in the District of Connecticut with conspiracy, violation of the Export Control Reform Act, smuggling goods from the United States, and international money laundering conspiracy offenses.
On December 1, 2022, By Trade OU pleaded guilty to one count of conspiracy to violate the Export Control Reform Act, and one count of international money laundering conspiracy. In pleading guilty, By Trade OU admitted that it received funds from a Russian company, identified in the indictment as “Company B,” to purchase a jig grinder on its behalf from a Latvian company that had arranged to purchase the jig grinder from the Connecticut manufacturer.
On March 29, 2023, in a related civil forfeiture action, U.S. District Judge Victor A. Bolden ordered the forfeiture of $484,696 that had been delivered to the Connecticut manufacturer as part of the attempted purchase of the jig grinder. On April 4, 2023, in association with the sentencing of By Trade OU, Judge Bolden ordered the forfeiture of an additional €312,192.44 (approximately $342,000) seized from By Trade OU.
As to the other defendants charged in the indictment, U.S. Attorney Avery stressed that an indictment is merely an allegation, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This investigation is being conducted by HSI field offices in New Haven, Portland (Ore.), and the Hague, Netherlands; the U.S. Department of Commerce’s Office of Export Enforcement in Boston; and the FBI. The Prosecutor-General’s Office of the Republic of Latvia, the Prosecutor General’s Office of the Republic of Estonia, Latvian Tax and Customs Police, Estonian Tax and Customs Board, and the Latvian State Police are assisting the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale, Konstantin Lantsman, and David Nelson of the District of Connecticut, and Trial Attorney Matthew Anzaldi of the Justice Department’s National Security Division. The Justice Department’s Office of International Affairs is providing valuable assistance.
The investigation was coordinated with the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2 and run out of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
This case is being prosecuted through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Federal Court Orders Forfeiture of $826K in Funds Used in Attempt to Export Dual-Use High Precision Jig Grinder to RussiaRead the Press Release
An investigation into the attempted smuggling of a dual-use export-controlled item to Russia in violation of United States export laws and regulations has resulted in the forfeiture of approximately $826,000.
As alleged in court documents and statements made in court, beginning in 2018, operators of a Latvia-based corporation conspired with the operator of By Trade OU, an Estonia-based company, as well as individuals in Russia and a Russia-based company, to violate U.S. export laws and regulations and smuggle a jig grinder that was manufactured in Connecticut to Russia. A jig grinder is a high-precision grinding machine system that does not require a license to export to European Union countries but does require a license for export and reexport to Russia because of its potential application in nuclear proliferation and defense programs. At no time did the defendants apply for, receive or possess a license of authorization from the U.S. Department of Commerce to export or reexport the jig grinder to Russia, as required by the Export Control Reform Act of 2018 and the Export Administration Regulations (EAR), which restrict the export of items that could make a significant contribution to the military potential of other nations or that could be detrimental to U.S. foreign policy and national security.
U.S. authorities, working with Latvian authorities, intercepted the jig grinder in Riga, Latvia, before it was to be shipped to Russia.
Several individuals and companies involved in this alleged scheme have been charged by indictment in the District of Connecticut with conspiracy, violation of the Export Control Reform Act, smuggling goods from the United States and international money laundering conspiracy offenses.
On Dec. 1, 2022, By Trade OU pleaded guilty to one count of conspiracy to violate the Export Control Reform Act, and one count of international money laundering conspiracy. In pleading guilty, By Trade OU admitted that it received funds from a Russian company, identified in the indictment as “Company B,” to purchase a jig grinder on its behalf from a Latvian company that had arranged to purchase the jig grinder from the Connecticut manufacturer.
On March 29, in a related civil forfeiture action, U.S. District Judge Victor A. Bolden ordered the forfeiture of $484,696 that had been delivered to the Connecticut manufacturer as part of the attempted purchase of the jig grinder. On April 4, 2023, in association with the sentencing of By Trade OU, Judge Bolden ordered the forfeiture of an additional €312,192.44 (approximately $342,000) seized from By Trade OU.
U.S. Attorney Vanessa Roberts Avery for the District of Connecticut; Director Andrew Adams of Task Force KleptoCapture; Acting Special Agent in Charge Michael J. Krol of Homeland Security Investigations (HSI), Boston; Special Agent in Charge Rashel D. Assouri of the U.S. Department of Commerce’s Office of Export Enforcement, Boston; and Special Agent in Charge Robert Fuller of the FBI New Haven Field Office made the announcement.
This investigation is being conducted by HSI Field Offices in New Haven, Connecticut; Portland Oregon; and the Hague, Netherlands; the U.S. Department of Commerce’s Office of Export Enforcement in Boston; and the FBI. The Prosecutor-General’s Office of the Republic of Latvia, the Prosecutor General’s Office of the Republic of Estonia, Latvian Tax and Customs Police, Estonian Tax and Customs Board and the Latvian State Police are assisting the investigation.
Assistant U.S. Attorneys Rahul Kale, Konstantin Lantsman and David Nelson for the District of Connecticut and Trial Attorney Matthew Anzaldi of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. The Justice Department’s Office of International Affairs provided valuable assistance.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
This case is being prosecuted through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Estonian National Charged with Helping Russian Military Acquire U.S. Electronics, Including Radar Components; Sought-Computer Hacking SoftwareRead the Press Release
An eighteen-count indictment was unsealed today in Brooklyn charging Andrey Shevlyakov, an Estonian national, with conspiracy and other charges related to procuring U.S.-made electronics on behalf of the Russian government and military.
Shevlyakov was arrested on March 28, 2023 in Estonia. As alleged in the indictment and other court filings, at the time of his arrest, the Estonian seized inbound shipments addressed to Shevlyakov’s front companies, including one that contained approximately 130 kilograms (286 pounds) of radio equipment.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Special Agent in Charge, FBI Houston and Trey McClish, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security – Office of Export Enforcement’s Dallas Field Office announced the charges.
“As alleged, for more than a decade, the defendant has been acquiring sensitive electronics from U.S. manufacturers on behalf of the Russian government, in defiance of U.S. export controls,” stated United States Attorney Peace. “Our Office will not relent in its efforts to stop those who unlawfully procure U.S. technology for Russia or any other sanctioned countries, entities or individuals.”
Mr. Peace expressed his appreciation for Task Force KleptoCapture, the Department of Justice’s Office of International Affairs, and the Estonian Internal Security Service (KAPO) for their valuable assistance.
“For years, Mr. Shevlyakov’s elaborate web of deceit allowed him to allegedly procure sensitive American-made electronics on behalf of the Russian military,” said FBI Houston Special Agent in Charge James Smith. “His illegal acquisitions of sophisticated U.S. technology endangered citizens in both Ukraine and the United States. FBI Houston will continue to work with our valued international partners, especially the Estonian Internal Security Service (KAPO), to investigate and disrupt actors who illicitly support the unprovoked invasion of Ukraine by Russian armed forces.”
“As these actions have proven, BIS will continue to hunt down and bring to justice those who harm our national security and illicitly supply the Russian regime,” said Special Agent in Charge McClish.
As alleged in the indictment and other court filings, Shevlyakov procured sensitive electronics from U.S. manufacturers on behalf of Russian end-users, including defense contractors and other Russian government agencies. Most of these items would have been unavailable to Russian end-users if ordered directly for shipment to Russia.
The items that Shevlyakov purchased included low-noise pre-scalers and synthesizers (used to conduct high-frequency communications) and analog-to-digital converters, which can be found in most defense systems that must respond to environmental conditions, including software-defined radio, avionics, missiles, and electronic warfare systems. Shevlyakov’s communications with Russia-based customers included explicit discussions of whether there were “military” goods in certain orders.
Shevlyakov also attempted to acquire computer hacking tools. In May 2020, one of Shevlyakov’s front companies exchanged messages with a Russia-based individual about acquiring a licensed copy of Metasploit Pro, a U.S.-made software tool that is used to penetrate computer networks. Metasploit is intended for use in assessing network vulnerabilities, but is also widely used by computer hackers. A license to use Metasploit Pro costs approximately $15,000. In the email, the individual asked Shevlyakov’s front company to acquire Metasploit and detailed a history of prior failed attempts to acquire the software through third parties in countries outside Russia. The individual added that the software was “dual use” and that accordingly, “sales to Russia are virtually impossible.” Thus, the individual said, “we cannot reveal the end user, nor can we identify ourselves.” On or about June 1, 2020, the front company email address wrote back, listing prices for different versions of Metasploit Pro.
To deliver his goods, Shevlyakov ran an intricate logistics operation involving frequent smuggling trips across the Russian border by himself and others. Shevlyakov engaged in this conduct despite being listed on a Department of Commerce-maintained list (the “Entity List”) that designates individuals and companies who are barred from exporting items from the United States without a license. Shevlyakov was added to the Entity List in 2012, after the U.S. government identified him as a procurement agent charged with pursuing U.S. technology for Russian government and military end users. Shevlyakov used false names and a web of front companies to evade the Entity List’s restrictions.
If convicted, the defendant faces a maximum of 20 years’ imprisonment. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Alexander Mindlin is in charge of the prosecution, along with Trial Attorney Matthew Anzaldi of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Litigation Analyst Mary Clare McMahon. The Office thanks the Estonian authorities for their valuable support.
The Defendant:
ANDREY SHEVLYAKOV
Age: 45
Tallinn, EstoniaE.D.N.Y. Docket No. 22-CR-490 (RPK)
Dunklin County Man Sentenced to 15 Years in Prison for Methamphetamine and Gun OffensesRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Wednesday sentenced John Andrew Schoolcraft, 32, of Kennett, Missouri, to serve 15 years in federal prison for the offenses of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
At a guilty plea hearing in January, Schoolcraft admitted that beginning in May of 2022 and continuing through June 23, 2022, he and others were involved in distributing methamphetamine throughout Dunklin County, Missouri. The Missouri State Highway Patrol utilized confidential informants and audio and video recording devices to conduct controlled drug buys of methamphetamine from Schoolcraft and others involved. The case culminated in the execution of a search warrant at Schoolcraft’s residence in Kennett where officers seized over four pounds of methamphetamine, a loaded Glock, .45 caliber semi-automatic pistol and $2,785 in cash.
This case was investigated by the Missouri State Highway Patrol, assisted by the Southeast Missouri Drug Task Force. Assistant U.S. Attorney Julie Hunter handled the prosecution for the government.
- Detroit Man Sentenced to 5 Years for Role in Drug Conspiracy
Dentist Pleads Guilty to Tax EvasionRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Frantz Brignol has pleaded guilty to one count of tax evasion and one count of failing to file a tax return. Brignol faces up to six years in federal prison on the offenses. A federal grand jury had returned the indictment against Brignol on November 22, 2022. A sentencing date has not yet been set.
According to the court records, Brignol, a dentist, had amassed almost $900,000 in tax liabilities to the IRS. Between approximately 2014 and 2020, Brignol evaded his tax payments by hiding hundreds of thousands of dollars in his mother’s bank accounts (for which he had signatory authority), trading funds overseas, and failing to disclose a bank account to the IRS. Despite an annual income of more than $200,000 in the calendar year 2020, Brignol also failed to file an income tax return as required under federal law.
This case is being investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
Dealer of Fentanyl-Laced Heroin That Resulted in the Overdose Death of Actor Michael K. Williams Pleads GuiltyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that IRVIN CARTAGENA, a/k/a “Green Eyes,” pled guilty today to conspiring to distribute heroin, fentanyl, and fentanyl analogue. As part of the conspiracy, CARTAGENA distributed the fentanyl-laced heroin that resulted in the death of Michael K. Williams. CARTAGENA pled guilty earlier today before U.S. District Judge Ronnie Abrams.
U.S. Attorney Damian Williams said: “Irvin Cartagena sold fentanyl-laced heroin in broad daylight in New York City, feeding addiction and causing tragedy. In doing so, he dealt the fatal dose that killed Michael K. Williams. This Office and our law enforcement partners will continue to hold accountable the dealers who push this poison, exploit addiction, and cause senseless death in our community.”
According to the allegations in the complaints, court filings, and statements made in Court:
Between at least in or about August 2020 and February 2022, a drug trafficking organization (the “DTO”) was operating in the vicinity of 224 South 3rd Street in the Williamsburg neighborhood of Brooklyn, New York. The DTO sold heroin laced with fentanyl and a fentanyl analogue on the street in front of, and from an apartment inside of, the apartment building located at 224 South 3rd Street, among other places. On or about September 5, 2021, members of the DTO sold Michael K. Williams heroin, which was laced with fentanyl and a fentanyl analogue, with CARTAGENA executing the hand-to-hand transaction. Williams died as a result of using that fentanyl-laced heroin. Despite knowing that Williams died after being sold the DTO’s product, CARTAGENA and his co-conspirators continued to sell fentanyl-laced heroin in broad daylight amidst residential apartment buildings in Brooklyn and Manhattan.
* * *
CARTAGENA, 39, of Brooklyn, New York, pled guilty to one count of conspiracy to distribute and possess with intent to distribute fentanyl analogue, fentanyl, and heroin, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison. As part of his guilty plea, CARTAGENA stipulated that the substances he conspired to distribute and possess with intent to distribute resulted in the death of Michael K. Williams.
The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of the New York City Police Department and the New York/New Jersey High Intensity Drug Trafficking Area Intelligence Analysts. Mr. Williams also thanked the Organized Crime Drug Enforcement Task Forces New York Strike Force, the United States Marshals Service, the New York/New Jersey Regional Fugitive Task Force, and the New York Division of the Drug Enforcement Administration for their assistance in this case.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Micah Fergenson and David Robles are in charge of the prosecution.
Criminal Marketplace Disrupted in International Cyber OperationRead the Press Release
The Justice Department announced today a coordinated international operation against Genesis Market, a criminal online marketplace that advertised and sold packages of account access credentials – such as usernames and passwords for email, bank accounts, and social media – that had been stolen from malware-infected computers around the world.
“Working across 45 of our FBI Field Offices and alongside our international partners, the Justice Department has launched an unprecedented takedown of a major criminal marketplace that enabled cybercriminals to victimize individuals, businesses, and governments around the world,” said Attorney General Merrick B. Garland. “Our seizure of Genesis Market should serve as a warning to cybercriminals who operate or use these criminal marketplaces: the Justice Department and our international partners will shut down your illegal activities, find you, and bring you to justice.”
“Yesterday, the Department of Justice and its partners dismantled the Genesis Market and arrested many of its users around the world,” said Deputy Attorney General Lisa O. Monaco. “Genesis falsely promised a new age of anonymity and impunity, but in the end only provided a new way for the Department to identify, locate, and arrest on-line criminals. The Department of Justice is shining a light on the internet’s darkest corners – in the last year alone, our agents, prosecutors, and partners have dismantled the darknet’s largest marketplaces – Hydra Market, BreachForums, and now Genesis. Each takedown is yet another blow to the cybercrime ecosystem.”
Since its inception in March 2018, Genesis Market has offered access to data stolen from over 1.5 million compromised computers around the world containing over 80 million account access credentials. Account access credentials advertised for sale on Genesis Market included those connected to the financial sector, critical infrastructure, and federal, state, and local government agencies. Genesis Market was also one of the most prolific initial access brokers (IABs) in the cybercrime world. IABs attract criminals looking to easily infiltrate a victim’s computer system. Genesis Market offered for sale the type of access sought by ransomware actors to attack computer networks in the United States and around the world, and published private-sector reports indicate that they indeed were used by ransomware actors to attack such systems.
Genesis Market was user-friendly, providing users with the ability to search for stolen access credentials based on location and/or account type (e.g., banking, social media, email, etc.). In addition to access credentials, Genesis Market obtained and sold device “fingerprints,” which are unique combinations of device identifiers and browser cookies that circumvent anti-fraud detection systems used by many websites. The combination of stolen access credentials, fingerprints, and cookies allowed purchasers to assume the identity of the victim by tricking third party websites into thinking the Genesis Market user was the actual owner of the account.
Genesis Market users were located all over the world. Federal law enforcement has worked to identify prolific users of Genesis Market who purchased and used stolen access credentials to commit fraud and other cybercrimes. This effort resulted in hundreds of leads being sent to FBI field offices throughout the United States, as well as to foreign law enforcement partners. Further, as part of this operation, dubbed Operation Cookie Monster, law enforcement seized 11 domain names used to support Genesis Market’s infrastructure pursuant to a warrant authorized by the U.S. District Court for the Eastern District of Wisconsin.
“The operation being announced today is the direct result of the hard work, dedication, and exceptional collaborative efforts of the FBI and its partners around the globe,” said U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin. “Along with investigative partners and our Justice Department colleagues, my office remains committed to using all available tools to protect individuals from cybercriminals like those who operate these types of online marketplaces.”
“Today’s takedown of Genesis Market is a demonstration of the FBI’s commitment to disrupting and dismantling key services used by criminals to facilitate cybercrime,” said FBI Director Christopher Wray. “The work in this case is a great example of the FBI’s ability to leverage our technical capabilities and work shoulder-to-shoulder with our international partners to take away the tools cyber criminals rely on to victimize people all across the world.”
The FBI Milwaukee Field Office investigated the case, with assistance from 44 other field offices, the U.K. National Crime Agency, Italy’s Polizia de Stato, Police of Denmark, Australian Federal Police, Royal Canadian Mounted Police, Canada’s Sûreté du Québec, Romanian Police, Cybercrime Sub-directorate for French judicial police, Spain’s Policia Nacional, Spain’s Guardia Civil, Germany’s Federal Criminal Police Service, Swedish Police Authority, Poland’s Central Bureau for Combating Cybercrime, Dutch National Police, Finland’s National Bureau of Investigation, Switzerland’s Office of the Attorney General, Swiss Federal Police, Estonia’s Prosecutor General’s Office, Iceland’s Metropolitan Police, New Zealand Police, Eurojust, and Europol.
The Department appreciates the assistance provided by authorities in Bulgaria and Latvia in response to Mutual Legal Assistance requests.
Trial Attorneys Benjamin Proctor and Jessica Peck of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Farris Martini for the Eastern District of Wisconsin are handling the investigation. The Justice Department’s Office of International Affairs provided significant assistance.
Victim credentials obtained over the course of the investigation have been provided to the website Have I Been Pwned, which is a free resource for people to quickly assess whether their access credentials have been compromised (or “pwned”) in a data breach or other activity. Victims can visit HaveIBeenPwned.com to see whether their credentials were compromised by Genesis Market so that they can know whether to change or modify passwords and other authentication credentials that may have been compromised.
If you have been active on Genesis Market, in contact with Genesis Market administrators, or have been a victim and need to report, please email the FBI at [email protected].
Court Sentences 15th Defendant Involved in Southeast Washington Drug Trafficking ConspiracyRead the Press Release
WASHINGTON – Rico Griffin, 34, of Washington, D.C., was sentenced today to 66 months in prison for his role in a drug trafficking network based in Southeast Washington that sold cocaine, crack cocaine, Fentanyl, PCP, and marijuana, announced United States Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne A. Jacobs, of the Washington Field Office Criminal and Cyber Crime Division, and Chief Robert J. Contee, III, of the Metropolitan Police Department (MPD).
Griffin pleaded guilty on January 25, 2023, to conspiracy to distribute and possess with the intent to distribute cocaine base. Griffin was indicted with 16 co-defendants (listed below). All but two of the seventeen defendants have pleaded guilty and received prison terms ranging from 24 months to 114 months based on their criminal conduct and criminal histories.
The case stems from an investigation by the MPD Narcotics and Special Investigations Division and the FBI into the “MLK Crew” - a group of individuals who were operating an open-air drug market in and around the 2900 block of Martin Luther King Jr. Avenue, SE, Washington D.C. The investigation began in response to numerous citizen complaints about rampant drug trafficking and accompanying incidents of violence in the area. In addition to numerous citizen complaints, MPD targeted this area as one of the most notorious in the city in terms of recent shootings and shots fired, as well as for the area’s high numbers of arrests—particularly offenses involving drugs and firearms.
“Our Office, the Metropolitan Police Department, and the FBI are focused on the couple dozen blocks across our District that are magnets for violence,” said US Attorney Graves. “There is no doubt that the blocks in which the MLK Mellon Crew operated were among the most dangerous. We know that drug trafficking attracts violence and we saw, after dismantling this crew, a substantial decrease in shooting incidents in the months after the incident. Temporarily breaking the cycle of violence offers a valuable window to restore order and to provide the community the support it needs to heal.”
“The defendants wreaked havoc on the residents of Congress Heights by running an open-air drug market built on violence, often commandeering local businesses to conduct illegal sales,” said SAC Jacobs. “As this case demonstrates, the FBI through its commitment to partnerships will aggressively pursue data-driven intelligence and public tips to dismantle the violent gangs terrorizing our communities.”
“There is no excuse for the fear that the MLK Mellon Crew spread across our community,” said Chief Contee. “Their drug trafficking and violence has impacted our entire city. Now, thanks to the tireless work of our officers, detectives, and law enforcement partners, our community can rest easier knowing that these individuals are being held accountable.”
As part of its investigation, MPD and FBI began conducting surveillance, obtaining search warrants, and making controlled buys of narcotics from suspected members of the conspiracy.
The investigation revealed that MLK Crew members openly engaged in the sale of various drugs (including PCP, crack, fentanyl, and marijuana) and took over the area and, effectively, some of the neighborhood’s businesses. MLK Crew members would often go into the neighborhood businesses to complete sales and constantly loitered outside of these businesses to engage in sales. As part of its investigation, MPD and FBI obtained video of defendants openly conducting narcotics transactions in these businesses and even displaying firearms. Throughout the case, law enforcement seized at least 10 firearms (many of which were privately manufactured firearms or “ghost guns”) from MLK crew members and/or stash houses and a sizeable quantity of various narcotics. The MLK Crew’s drug trafficking contributed to numerous incidents of drug-related violence in and around the 2900 Block of MLK Avenue, including multiple assaults, shootings, robberies, and murders—most notably, the murder of a six-year-old girl who was the daughter of one of the co-defendants in this case.
In July of 2021, a few months after opening the investigation, MPD and FBI arrested 11 initial defendants and seized 10 firearms, along with PCP, crack cocaine, powder cocaine, heroin, pills, and over $2,500 in cash. The additional six defendants were charged in September 2021 and were arrested shortly thereafter; however, Rico Griffin, remained a fugitive until January 3, 2023. After his arrest, Rico Griffin quickly pleaded guilty and was sentenced today.
The prosecutions followed a joint investigation by the FBI Washington Field Office’s Cross Border Safe Streets Task Force in partnership with MPD’s Narcotics and Special Investigations (NSID) Violence Reduction Unit (VRU). This partnership targets the most egregious and violent street crews operating in the District of Columbia. Assistance was provided by the U.S. Drug Enforcement Administration, the U.S. Park Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorneys David Henek and Andy Wang of the of the Violence Reduction and Trafficking Offenses (VRTO) Section of the U.S. Attorney’s Office for the District of Columbia.
The investigation had the sponsorship and support of the federal Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
DEFENDANT
STATUS
Ricky Lyles, 42, Accokeek, MD
sentenced to 114 months for conspiracy to distribute 16.8-22.4 grams of crack cocaine and possessing a firearm
Nico Griffin, 32, Washington, DC
sentenced to 37 months for conspiracy to distribute 22.4-28 grams of crack cocaine
Dandre Shorter, 28, Washington, DC
sentenced to 37 months for conspiracy to distribute 22.4-28 grams of crack cocaine
Wesley Leake, 32, Washington, DC
sentenced to 40 months for conspiracy to distribute 22.4-28 grams of crack cocaine
Leon Lindsay, 37, Washington, DC
sentenced to 57 months for conspiracy to distribute 22.4-28 grams of crack cocaine
Dezmond Cunningham, 28, Washington, DC
sentenced to 48 months conspiracy to distribute 22.4-28 grams of crack cocaine
Divine Chappell, 26, Washington, DC
sentenced to 76 months for possession of a firearm in furtherance of drug trafficking and conspiracy to distribute crack cocaine
Shawn Wooden, 40, Washington, DC
trial scheduled for October 16
Barry Tyson, 20, Washington, DC
sentenced to 73 months of incarceration for possession of a firearm in furtherance of drug trafficking and conspiracy to distribute crack cocaine
Delonta Chappell, 35, Washington, DC
sentenced to 48 months for conspiracy to distribute 28-112 grams of crack cocaine
Anthony Graves, 32, Washington, DC
sentenced to 27 months for conspiracy to distribute 22.4-28 grams of crack cocaine
Deshawn Loggins, 21, Temple Hills, MD
sentenced to 42 months for conspiracy to distribute 28-112 grams of crack cocaine
Kevonte Randall, 25, Washington, DC
sentenced to 46 months for conspiracy to distribute 22.4-28 grams of crack cocaine and possessing a firearm
Corenzo Mobery, 40, Washington, DC
trial scheduled for October 16th.
Rico Griffin, 34, Washington, DC
66 months in prison for conspiracy to distribute 22.4-28 grams of crack cocaine
Shahborne Scales, 32, Washington, DC
sentenced to 66 months for conspiracy to distribute 22.4-28 grams of crack cocaine
Luther McDuffie, 35, Washington, DC
sentenced to 24 months for conspiracy to distribute 22.4-28 grams of crack cocaine
Convicted Felon Pleads Guilty to Possession of a Firearm After Being Identified on SnapChatRead the Press Release
CONCORD – A Manchester man, Reda Shehabeldin, 26, pleaded guilty in federal court to one count of possession of a firearm by a prohibited person, U.S. Attorney Jane E. Young announces.
U.S. District Court Judge Samantha Elliott scheduled sentencing for July 12, 2023. Mr. Shehabeldin was indicted on January 10, 2023.
On July 15, 2022, Shehabeldin was identified—in a video posted by another individual on SnapChat—holding a Glock, model 30 Gen 4 .45 caliber subcompact pistol. At the time, he was a convicted felon. Hillsborough County Superior Court convicted Shehabeldin in January 2022 for reckless conduct, a class B felony offense under the state laws of New Hampshire.
The charging statute provides a sentence of no greater than 15 years in prison, three years of supervised release, and a maximum fine of $250,000.00. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The investigation was led by the Bureau of Alcohol, Tobacco, Firearms & Explosives (“ATF”) and the Manchester Police Department. Assistant U.S. Attorneys John Kennedy and Geoffrey Ward are prosecuting the case.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities; supporting community-based organizations that help prevent violence from occurring in the first place; setting focused and strategic enforcement priorities; and measuring the results.
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Clarksville Man Sentenced to Federal Prison for Child Exploitation ChargesRead the Press Release
NASHVILLE – A Clarksville, Tennessee, man was sentenced to federal prison yesterday for child exploitation charges, announced U.S. Attorney Henry C. Leventis.
Kevin Figueroa, 33, was sentenced to 10 years in prison concurrently on each count of attempted coercion and enticement of a minor to engage in unlawful sexual activity and attempted transfer of obscene material to a minor. Figueroa was sentenced to an additional 30 months in prison for destruction or removal of evidence to prevent search or seizure, to run consecutively, and will serve 10 years of supervised release upon his release from prison.
Figueroa was indicted in April 2022, after contacting an undercover FBI agent who was conducting an online covert investigation using a popular mobile dating application. The undercover profile indicated that the persona of the agent was a 15-year-old female living in Clarksville. Figueroa, using the profile “Spike tkro,” continued to message the agent, even after confirming the persona was a 15-year-old female and sent a lewd photo and message before exchanging phone numbers with the agent. In subsequent communications, Figueroa proposed meeting with the agent to engage in sexual activity and arranged a meeting in November 2019, for which Figueroa failed to show.
The following month, Figueroa initiated contact with the agent on a different dating app and continued to communicate with who he believed to be the same 15-year-old female. Another meeting was subsequently arranged for March 17, 2020, at an apartment building in Clarksville for the purpose of engaging in sexual activity. When Figueroa arrived at the meeting location, he was met by FBI agents.
While being interviewed by FBI agents, Figueroa learned that they intended to seize his phone and surreptitiously deleted apps from his phone.
Figueroa was found guilty of the charges after a bench trial before Chief U.S. District Judge Waverly D. Crenshaw, Jr., in September 2022.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Monica R. Morrison and Robert E. McGuire.
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City of Chicago Held in Violation of Americans with Disabilities ActRead the Press Release
A federal judge in Chicago held the City of Chicago liable for violating the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act by failing to provide accessible pedestrian signals at signalized intersections throughout the city to those who are blind or have low vision.
In April of 2021, the Justice Department moved to intervene in a disability discrimination lawsuit that people with visual disabilities brought against the City under the ADA and the Rehabilitation Act. The United States’ complaint in intervention alleged that the city fails to provide people who are blind, have low vision or are deaf-blind with equal access to pedestrian signal information at intersections. Pedestrian signal information, such as a flashing “Walk/Don’t Walk” signal, indicates when it is safe to cross the street for sighted pedestrians.
Accessible pedestrian signals (APSs) are devices that provide pedestrians with safe-crossing information in a non-visual format, such as through audible tones, speech messages and vibrotactile surfaces. Since at least 2006, Chicago has recognized the need to install APSs for pedestrians with visual disabilities, specifically identifying the need for such installation in multiple city documents. Yet, while Chicago currently provides sighted pedestrians visual crossing signals at nearly 2,800 intersections, the United States’ suit alleged that — at the time it intervened — fewer than one percent of those were equipped with APSs for people who are blind or have low vision.
On March 31, U.S. District Judge Elaine E. Bucklo sided with the United States and the private plaintiffs in a decision on both sides’ motions for summary judgment, holding the city in violation of the ADA and Section 504 of the Rehabilitation Act. The court found that the city had provided APS at only a “miniscule portion of the whole,” and thus had failed “to provide ‘meaningful access’ to its network of existing facilities and to ensure that newly constructed signals are designed and constructed in such a manner as to be ‘readily accessible’ by blind individuals.”
“Federal law offers people with visual disabilities the promise of full participation in community life, and safely navigating city streets is a critical part of that,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue pushing for a remedy that fully addresses the discrimination faced by blind people in Chicago.”
“As previously stated, the U.S. Attorney’s Office took action in this case in order to ensure that Chicagoans with disabilities are provided equal access to city services, particularly services where the primary focus is on public safety,” said Acting U.S. Attorney Pasqual for the Northern District of Illinois. “Our office remains committed to standing up for the rights of all those who reside in and visit the City of Chicago and all other communities across the Northern District of Illinois. We look forward to working with the City of Chicago to identify an appropriate remedy for the future.”
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report.
City of Chicago Held in Violation of Americans with Disabilities ActRead the Press Release
A federal judge in Chicago held the City of Chicago liable for violating the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act by failing to provide accessible pedestrian signals at signalized intersections throughout the city to those who are blind or have low vision.
In April of 2021, the Justice Department moved to intervene in a disability discrimination lawsuit that people with visual disabilities brought against the City under the ADA and the Rehabilitation Act. The United States’ complaint in intervention alleged that the city fails to provide people who are blind, have low vision or are deaf-blind with equal access to pedestrian signal information at intersections. Pedestrian signal information, such as a flashing “Walk/Don’t Walk” signal, indicates when it is safe to cross the street for sighted pedestrians.
Accessible pedestrian signals (APSs) are devices that provide pedestrians with safe-crossing information in a non-visual format, such as through audible tones, speech messages and vibrotactile surfaces. Since at least 2006, Chicago has recognized the need to install APSs for pedestrians with visual disabilities, specifically identifying the need for such installation in multiple city documents. Yet, while Chicago currently provides sighted pedestrians visual crossing signals at nearly 2,800 intersections, the United States’ suit alleged that — at the time it intervened — fewer than one percent of those were equipped with APSs for people who are blind or have low vision.
On March 31, U.S. District Judge Elaine E. Bucklo sided with the United States and the private plaintiffs in a decision on both sides’ motions for summary judgment, holding the city in violation of the ADA and Section 504 of the Rehabilitation Act. The court found that the city had provided APS at only a “miniscule portion of the whole,” and thus had failed “to provide ‘meaningful access’ to its network of existing facilities and to ensure that newly constructed signals are designed and constructed in such a manner as to be ‘readily accessible’ by blind individuals.” The case is being handled for the U.S. Attorney’s Office by Assistant U.S. Attorneys Patrick Johnson and Sarah J. North as well as by the Civil Rights Division.
“Federal law offers people with visual disabilities the promise of full participation in community life, and safely navigating city streets is a critical part of that,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue pushing for a remedy that fully addresses the discrimination faced by blind people in Chicago.”
“As previously stated, the U.S. Attorney’s Office took action in this case in order to ensure that Chicagoans with disabilities are provided equal access to city services, particularly services where the primary focus is on public safety,” said Acting U.S. Attorney Pasqual for the Northern District of Illinois. “Our office remains committed to standing up for the rights of all those who reside in and visit the City of Chicago and all other communities across the Northern District of Illinois. We look forward to working with the City of Chicago to identify an appropriate remedy for the future.”
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report.
Chicago Man Sentenced to 78 Months for Possessing Methamphetamine for DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Shakur Antwan Clayton, 28, Chicago, Illinois, was sentenced yesterday by U.S. District Judge William M. Conley to 78 months in prison for possessing 50 grams or more of methamphetamine with intent to distribute. This prison term will be followed by a four-year period of supervised release.
On May 16, 2022, an inspector from the Wisconsin State Patrol stopped a vehicle in Monroe County, Wisconsin for speeding. The driver, later identified as Clayton, claimed he did not have a driver’s license and gave the inspector a false name. The inspector also smelled marijuana and saw a marijuana blunt in the center console. When the inspector asked Clayton to step out of the car, he sped off at a high rate of speed. Law enforcement pursued the car before it lost control, crossed into the median, and rolled into the opposite lane of traffic. Clayton crawled out of the car and fled on foot. As law enforcement approached Clayton, he reached into his waistband, pulled out a plastic bag, ripped it open, and threw the contents into the air.
Laboratory testing determined that the substance Clayton discarded was 179 grams of pure methamphetamine. Clayton admitted that he intended to distribute the methamphetamine to someone in the Western District of Wisconsin.
The charge against Clayton was the result of an investigation conducted by the Wisconsin State Patrol and the Drug Enforcement Administration. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Chicago Man Sentenced to 33 Months in PrisonRead the Press Release
HAMMOND- Rajesh Kanuru, 46 years old, of Chicago, Illinois, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to wire fraud and embezzlement against a bankruptcy estate, announced United States Attorney Clifford D. Johnson.
Kanuru was sentenced to 33 months in prison, 2 years of supervised release and ordered to pay $348,388.50 in restitution.
According to documents in this case, Kanuru was an attorney with a practice located in Chicago, Illinois. From March 2012 through August 2018, Kanuru devised a scheme to defraud clients who had filed for bankruptcy, the Bankruptcy Trustee and the U.S. Bankruptcy Court for the Northern District of Indiana. In particular, Kanuru represented clients in a personal injury lawsuit. When these clients later filed for bankruptcy, Kanuru was appointed by the bankruptcy court to gather the settlement proceeds from their personal injury lawsuit to turn over to the bankruptcy estate on behalf of the clients. Instead, Kanuru embezzled the personal injury settlement proceeds totaling $348,388.50 for his own personal use and benefit.
“The Bankruptcy system, to work as it is designed, relies upon attorneys to act in the best interest of their clients and to comply with orders issued by the Bankruptcy judges,” said United States Attorney Clifford D. Johnson. “When, as happened in this case, an attorney violates both his clients trust and his obligations to the Bankruptcy court to unlawfully enrich himself, my Office will seek justice by prosecuting to the fully extent of the law.”
“Abuse of the bankruptcy system by embezzling estate funds and concealing those acts strikes at the very core of the integrity of the bankruptcy system and undermines public confidence in that system,” stated Nancy J. Gargula, United States Trustee for Indiana, Central and Southern Illinois (Region 10). “Today’s sentencing sends a strong message that these actions will not be tolerated. I am grateful to U.S. Attorney Johnson and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases.”
The United States Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis with additional office in South Bend, IN and Peoria IL.
The investigation was conducted by the United States Postal Inspection Service in collaboration with the Northern Indiana Bankruptcy Fraud Working Group coordinated by the United States Trustee for Region 10. The case was prosecuted by Assistant U. S. Attorney Luke Reilander.
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California Man Admits Sending Nude Pictures to Missouri TeenRead the Press Release
ST. LOUIS – A man from California pleaded guilty to a federal charge in St. Louis, Missouri Wednesday and admitted sending pictures of his genitals to a Missouri teen.
Colin M. Lind, 43, of San Diego County, California, met the 15-year-old girl and her family while he and his family were on vacation in Florida in the summer of 2021. After returning to Missouri, the teenage girl began receiving text messages from Lind. Lind admitted as part of his plea agreement sending a series of messages asking for pictures of the girl. He also sent two pictures of his genitals that he had taken in a hotel bathroom and a text saying, “you turn me on so much!!”
The teen told authorities that Lind placed his hand on her genitals while they were in Florida.
Lind pleaded guilty to a felony count of transfer of obscene material to a minor.
Lind is scheduled to be sentenced July 20. The crime carries a maximum penalty of 10 years in prison, a $250,000 fine, or both.
The case was investigated by the FBI and the Frontenac Police Department. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Bronx Man Involved in Brazen Burglary Ring Sentenced to More Than 5 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that WILLIE BAINES, 47, of the Bronx, New York, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 63 months of imprisonment, with credit for time served since Baines’s March 2021 arrest in a related federal case, for participating in a brazen burglary ring that resulted in the theft of millions of dollars in vehicles, phones, ATMs and other merchandise from numerous locations in Connecticut, New York and elsewhere.
According to court documents and statements made in court, Baines participated in a theft ring that, between June 2020 and January 2021, primarily burglarized car dealerships and mobile phone stores in Connecticut and New York. From dealerships, the group stole vehicle key fobs and vehicles, and from mobile phone stores they stole cell phones, electronics and other merchandise. They also stole ATMs from check cashing businesses and burglarized video game stores. Josepher Cartagena and Alexander Santiago planned and organized the burglary sprees, recruited Baines and others to participate in those burglaries, maintained inventories of the stolen property, sold that property, and then divided the proceeds among the participants.
Cartagena, Santiago, Baines and their associates committed more than 180 burglaries and stole more than $4 million in property. They often burglarized multiple locations in one night and, on numerous occasions, escaped from police by engaging the police in high-speed chases that had to be terminated for safety reasons. An apparent tally found on Santiago’s phone after his arrest indicated that he had engaged police in 89 chases.
Baines and his associates regularly carried firearms during the burglary spree. On December 22, 2020, Baines was arrested by New York City Police on state charges after a high-speed pursuit and a foot chase. Baines was driving a stolen vehicle that contained stolen property, and he possessed a firearm at the time of his arrest. Baines continued to burglarize business while released on bond in his state case.
Baines has been detained since March 11, 2021, after his state firearm charge was adopted for federal prosecution in the Southern District of New York. He pleaded guilty to unlawful possession of a firearm and, on November 8, 2021, was sentenced to 36 months of imprisonment.
On December 1, 2022, Baines pleaded guilty in the District of Connecticut to possession of stolen property.
Cartagena was arrested on December 23, 2020, after engaging law enforcement in multiple high-speed chases and collisions with law enforcement vehicles. Cartagena dropped a bag containing a 9mm handgun and assorted tools during the pursuit. A subsequent search of his residence revealed hundreds of thousands of dollars in stolen merchandise, more than 30 vehicle keys and key fobs, 9mm ammunition, and approximately $87,000 in cash.
Santiago was arrested on January 15, 2021. When investigators sought to conduct a court-authorized search of Santiago’s residence on that date, Santiago’s pit bull attacked an FBI agent and badly wounded his arm. A search of the residence revealed approximately 20 new cell phones in boxes, approximately 40 vehicle key fobs, a police radio, a glass-punch device, two firearms and a substantial amount of ammunition.
Cartagena and Santiago pleaded guilty and were each sentenced to 90 months of imprisonment. A fourth co-conspirator, Douglas Noble, also pleaded guilty and was sentenced to 54 months of imprisonment.
This investigation is being conducted by the Federal Bureau of Investigation and Connecticut State Police, with the assistance of approximately 30 local police departments. The case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff.
Brandon Resident Sentenced to 50 Years for Production of Child PornographyRead the Press Release
Jackson, Miss. – A Brandon resident was sentenced to serve a total of 50 years in federal prison for production of child pornography and possession of child pornography, announced U.S. Attorney Darren LaMarca, Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation, and Mississippi Attorney General Lynn Fitch.
Emilio Bellizzia a/k/a Juan Emilio Bellizzia, 44, a legal resident of the United States from Mexico, was sentenced on April 4, 2023 in U.S. District Court in Jackson.
Beginning in April 2021, and continuing through June 2021, FBI agents from Milwaukee and Jackson, along with the Mississippi Attorney General’s Office, investigated groups of individuals who were engaged in the receipt, possession, distribution, and production of child sex abuse material. On September 15, 2022, agents executed a federal search warrant at Bellizzia’s home in Brandon and found several electronic devices containing child pornography. Bellizzia attempted to flee to Mexico the following day.
Bellizzia was indicted by a federal grand jury and pled guilty on January 6, 2023 to production of child pornography and possession of child pornography.
Bellizzia was sentenced to serve two concurrent 30 year sentences for two counts of production of child pornography and a consecutive sentence of 20 years to serve for possession of child pornography, for a total of 50 years, followed by a lifetime of supervised release. He will also be required to register as a sex offender.
The case was investigated by the Federal Bureau of Investigation and the Mississippi Attorney General’s Office. Assistant United States Attorney Glenda R. Haynes prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Bogalusa Man Sentenced to 160 Months Imprisonment for Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – JAKARI BROWN, a/k/a “Jakari Lemar,” age 24, a resident of Bogalusa, Louisiana, was sentenced on April 4, 2023 by U.S. District Court Judge Greg G. Guidry to consecutive terms of 120 months and 40 months, respectively. Also, Judge Guidry imposed 3 years of supervised release and a mandatory $200 special assessment fee after BROWN plead guilty to two counts of being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), announced U.S. Attorney Duane A. Evans.
According to court documents, on April 25, 2019, BROWN, a convicted felon, possessed an Iberia Firearm (HiPoint) Model JPC, .40 caliber pistol that he used during a shootout near the corner of Hickory and South Columbia Streets in Bogalusa. BROWN was again found to be in possession of a gun on December 27, 2021, when police discovered a Smith & Wesson Model SW9VE, nine-millimeter pistol under the driver’s seat in the vehicle BROWN was driving.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Washington Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorneys J. Benjamin Myers and Maurice E. Landrieu, Jr. of the Narcotics Unit.
Billings fentanyl trafficker sentenced to more than eight years in prisonRead the Press Release
BILLINGS — A Billings man who admitted to trafficking fentanyl in the community after law enforcement found 9,500 fentanyl pills and a firearm in his vehicle was sentenced today to eight years and one month in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Kyngsten Bargar, 30, pleaded guilty in September 2022 to possession with intent to distribute fentanyl.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that in July 2021, law enforcement learned that Bargar was distributing fentanyl pills in the Billings area. The investigation determined that Bargar traveled to Washington to buy fentanyl, and in February 2022, the Montana Highway Patrol conducted a traffic stop east of Reed Point of a vehicle driven by Bargar. During a search of the vehicle, officers found two firearms in a backpack and a safe that contained nine small bags of blue pills. An analysis determined the pills contained fentanyl. Agents estimated there were approximately 9,500 pills. The safe also contained a large amount of U.S. currency that had been bundled separately with rubber bands. One of the bundles contained a paper copy of Bargar’s Montana driver’s license.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force and Billings Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Belize Real Estate Developer Charged with Embezzling Investor FundsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment in Manhattan federal court charging ANDRIS PUKKE with wire fraud and with engaging in unlawful monetary transactions in connection with his embezzlement of more than $13 million from Sanctuary Belize, a real estate development in Belize that he directed and controlled. PUKKE was arrested this morning in Los Angeles and will be presented in the Central District of California later today.
U.S. Attorney Damian Williams said: “Andris Pukke sold residential lots in Belize with a promise to build out an affordable vacation and retirement community in a tropical paradise. Instead, Pukke’s planned paradise turned out to be just a mirage, as he allegedly stole the very funds the development needed to pay for roads, utilities, and other infrastructure, leaving the lot buyers with nothing but land they cannot access or use. This Office will continue to aggressively pursue consumer fraud to ensure that businesses deliver on their promises to their customers.”
FBI Assistant Director Michael J. Driscoll said: “The defendant, as alleged, sold his victims dreams of a tropical haven, instead he used their money for his own interests. Investigating and holding financial fraudsters like Mr. Pukke accountable in the criminal justice system remains a top priority for the FBI.”
According to the Indictment unsealed today in Manhattan federal court:[1]
PUKKE directed and controlled Sanctuary Belize, which was a vacation and retirement community under development in Belize. PUKKE marketed and sold residential lots in the development to U.S. residents with promises that the development, when finished, would be near an international airport and hospital and would include a marina, a wildlife reserve, a beach club, and an equestrian center, among other amenities. Lot buyers could construct homes on their lots once the infrastructure, such as roads and electricity, was built out by Sanctuary Belize.
PUKKE and his salespeople falsely represented to lot buyers that Sanctuary Belize was free of debt and that all income from lot sales would go to the development of Sanctuary Belize's infrastructure. In fact, Sanctuary Belize had more than $12 million in debt, and PUKKE stole more than $13 million of the $124 million that Sanctuary Belize received from sales of residential lots. PUKKE stole the money by directing Sanctuary Belize employees to transfer the funds to recipients he designated. These transfers of funds were concealed on the books and records of Sanctuary Belize as business expenses, such as professional fees, legal fees, consulting fees, loans receivable, and online advertising expenses.
PUKKE used the embezzled funds for his personal benefit, including the renovation of his home in Newport Beach, California; investments in various entities unrelated to Sanctuary Belize; investments in unrelated real estate developments; repayment of personal debt; and payments to PUKKE's family members.
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PUKKE, 54, of Newport Bach, California, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of engaging in unlawful monetary transactions, which carries a maximum sentence of 10 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of the FBI. Mr. Williams also thanked the Federal Trade Commission for their assistance with the case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys James McMahon and Jeffrey C. Coffman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described herein should be treated as an allegation.
Baltimore Eight Tray Gangster Crips Member Sentenced to Almost 20 Years in Federal Prison for Racketeering and Drug Conspiracy ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Devon Powell, a/k/a “Smuppy,” age 32, of Baltimore, today to 235 months in federal prison, followed by five years of supervised release, for racketeering and drug conspiracy charges, related to his activities as a member of the Eight Tray Gangster (ETG) Crips gang in Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
The ETG Crips are a violent subset of the Crips gang that originated in California in the 1970s, eventually operating on the streets and in correctional facilities in Maryland beginning in the 2000s. For many years, the ETG Crips controlled the drug trade in particular territories in Baltimore City, including the area around the intersection between West Baltimore Street and South Hilton Street in West Baltimore (the “Baltimore Hilton neighborhood”), the area around the intersection between West Lexington Street and North Fremont Avenue (the “Lexington Terrace neighborhood”), and the area around the intersection between Frankford Avenue and Sinclair Lane in North Baltimore (the “Frankford Sinclair neighborhood”). The ETG Crips members from the Baltimore Hilton and Lexington Terrace neighborhoods referred to themselves as the Baccwest ETG Crips—modeling themselves after the Baccwest ETG Crips in Los Angeles—and ETG Crips members from the Frankford Sinclair neighborhood called themselves the Nutty North Side ETG Crips. The two groups worked together for common criminal purposes.
According to his guilty plea, Davon Powell was a member of the Baccwest ETG Crips in Baltimore. The Baccwest ETG Crips operated street-level drug distribution “shops” primarily in the Baltimore Hilton neighborhood, the Lexington Terrace neighborhood and the Franklin Sinclair neighborhood, distributing heroin, cocaine, crack cocaine, and marijuana. Non-members of the gang who attempted to sell drugs in the ETG Crips’ territories were targeted for violence by ETG Crips members. Powell admitted that he and his co-defendants conspired to distribute and distributed drugs, including heroin and crack cocaine.
The ETG Crips used social media websites to assert their claim to drug territories, intimidate rival gangs and witnesses against gang members, and to enhance the status of the ETG Crips and of individual members within the gang. Members of the ETG Crips posted photos and rap videos to social media websites flaunting weapons and threatening to kill those who stood in the way of the gang. By participating in criminal activities in furtherance of the gang, particularly violent acts directed by the ETG Crips leadership, ETG Crips members earned respect from fellow members and maintained or advanced their position within the gang.
Also, as detailed in his plea agreement, on May 19, 2019, in the 4900 block of Greencrest Road, Powell attempted to murder Victim 22, shooting the victim multiple times using a 9mm caliber pistol. Co-defendant Trayvon Hall, who was the leader of the ETG Crips, provided the weapon and served as the getaway driver. A week later, Hall offered to give Powell the 9mm caliber pistol used in the shooting, in exchange for a .40 caliber firearm that Powell had in his possession. Powell advised that the .40 caliber firearm was his “favorite,” but he had a friend with a .40 caliber firearm who might be willing to trade. Powell warned Hall that his friend’s gun was “dirty,” meaning it had been used to shoot or kill someone. Ultimately, Powell did swap guns with Hall, taking the 9mm pistol used to shoot Victim 22, and giving Hall his .40 caliber firearm.
Co-defendant Trayvon Hall, a/k/a “Tru,” and “G Tru,” age 31, of Baltimore, pleaded guilty to his role in the gang and was sentenced on December 7, 2022, to 454 months in federal prison.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the FBI and the Baltimore Police Department for their work in the investigation and thanked the Drug Enforcement Administration, the ATF, the Maryland Attorney General’s Office, the Baltimore County Police Department, and the Anne Arundel County Police Department for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Peter J. Martinez and Kim Y. Oldham, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Drug Dealer Sentenced to Six Years in Federal Prison as Part of a Drug Conspiracy Operating in BaltimoreRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Eric Wilson, age 51, of Owings Mills, Maryland, yesterday to six years in federal prison, followed by three years of supervised release, on drug conspiracy and distribution charges related to his supplying cocaine, crack cocaine and fentanyl to drug traffickers operating in West and Northwest Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, in April 2020, law enforcement began an investigation into drug trafficking in West and Northwest Baltimore. During the investigation, Wilson was identified as a source of supply for co-conspirators involved in the drug trafficking organization (“DTO”). Law enforcement intercepted calls between Wilson and his co-conspirators discussing the distribution of cocaine, crack cocaine and fentanyl, as well as other controlled substances.
Wilson admitted that he maintained two stash locations to store, cut and package drugs with other members of the conspiracy—his residence in Owings Mills, Maryland and a home in the 3200 block of Presstman Street in Baltimore. On April 29, 2021, investigators executed search warrants at both locations. From the Owings Mills residence law enforcement recovered: approximately 158 grams of a cocaine and fentanyl mixture; drug paraphernalia; one .40 caliber round of ammunition; $23,126 in cash, believed to be drug proceeds; and nine phones. From the Presstman Street residence law enforcement recovered: a mixture containing approximately 1,541 grams of cocaine; 717.72 grams of crack cocaine; 10.999 grams of fentanyl pills; and kilo wrappers and drug paraphernalia.
Throughout the course of his involvement in the conspiracy, it was reasonably foreseeable to Wilson that he or other members of the conspiracy would distribute more than five kilograms of cocaine, as well as quantities of crack cocaine, fentanyl and heroin, in furtherance of the conspiracy.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through relationships forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
United States Attorney Erek L. Barron commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys LaRai N. Everett and James T. Wallner, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Albemarle Man Pleads Guilty to Filing False Tax ReturnRead the Press Release
Winston-Salem, NC – MICHAEL TODD FORREST of Albemarle NC, appeared in federal court today on tax fraud charges, announced Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina. FORREST pleaded guilty to filing a false tax return, a violation of Title 26, United States Code, Section 7206(1), after an investigation revealed that he had withheld information from a tax return preparer regarding income related to his business.
According to court-filed documents, FORREST owned and operated a business known as The Forrest Fence Company, LLC located in Albemarle, North Carolina. The investigation revealed that during the years 2017-2021, FORREST routinely directed Forrest Fence customers to make checks payable to him, instead of to the business. Forrest would, in turn, cash those checks or deposit the checks into a personal bank account instead of the Forrest Fence business checking account. As part of his scheme, FORREST would conceal those checks from his tax return preparer, which resulted in a tax loss of over $200,000.
“To attempt to evade taxes by hiding income and filing false returns, is a theft from the American public. It is a felony offense that carries severe consequences,” said Donald “Trey” Eakins, Special Agent in Charge, IRS Criminal Investigation, Charlotte Field Office. “The overarching principle of IRS’s enforcement strategy is simply this: We protect the integrity of the tax system by ensuring everyone pays their fair share of tax.”
Sentencing is scheduled to take place on August 14, 2023, at 9:30 a.m. in Winston-Salem, North Carolina, courtroom number 2, before United States District Court Thomas D. Schroeder. At sentencing, Forrest faces a maximum sentence of three years in prison, a period of supervised release of up to one year, and monetary penalties.
Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina made the announcement after United States District Judge Thomas D Schroeder accepted the plea. IRS-Criminal Investigation is investigating the case and Assistant U.S. Attorney Ashley Waid is prosecuting the case.
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Acoma man sentenced to 70 months for sexual abuse in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Karl Shroulote, Sr. was sentenced to 70 months in prison. Shroulote, 41, of Acoma, New Mexico, and an enrolled member of the Pueblo of Acoma, pleaded guilty on Dec. 21, 2022, to sexual abuse in Indian Country.
In his plea agreement, Shroulote admitted that on April 29, 2018, he sexually assaulted a victim, identified in court records as Jane Doe, while she was unconscious in his home on the Acoma Pueblo.
Upon his release from prison, Aguilar will be subject to 5 years of supervised release and must register as a sex offender.
The Bureau of Indian Affairs investigated this case with assistance from the Pueblo of Acoma Police Department. Assistant United States Attorney Alexander F. Flores is prosecuting the case.
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Zephyrhills Man Pleads Guilty to Unlawfully Making A Destructive DeviceRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces that James John Hall (34, Zephyrhills) has pleaded guilty to one count of unlawfully making a firearm (destructive device). Hall faces up to 10 years’ imprisonment. Hall has also agreed to forfeit the destructive device, which includes a pipe, Tannerite, pyrotechnic powder, and pyrotechnic fuse.
According to court documents, on November 1 and 2, 2022, Hall spoke on the phone with a man to whom he had sold firearms in the past. In these conversations Hall offered to sell the man a “pipe bomb” that Hall had built. Hall shared with the man that he had contemplated using the “pipe bomb” to target an individual with whom he was angry. The man with whom Hall was communicating was a confidential informant with the Pasco Sherriff’s Office. The confidential informant reached out to the Pasco Sheriff’s Office, who then coordinated further investigation with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Later in the evening on November 2, the confidential informant and an undercover Pasco Sheriff’s detective met with Hall, where the detective purchased the “pipe bomb.” When asked about future purchases, Hall indicated he “had enough to build six more now.” Hall also indicated that the device he was selling to the detective had a magnet on the bottom of it.
The suspected destructive device was then disassembled by ATF bomb technicians, revealing a metal pipe sealed at both ends with end caps and filled with suspected pyrotechnic powder, with suspected pyrotechnic fuse inserted into one of the end caps. The pipe was taped to suspected mixed explosive materials. Further analysis by the ATF concluded that the device was designed to function as a weapon and would be characterized as both an improvised explosive bomb and destructive device. ATF found no records for Hall in the National Firearm Registration and Transfer Record, indicating he was unlawfully in possession of the device.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pasco Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Samantha Newman.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Western Massachusetts Man Pleads Guilty to Attempted Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – James Macko, age 23, of North Adams, Massachusetts, pled guilty today to one count of attempted coercion and enticement of a minor. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Macko admitted that between November 16, 2022 and December 9, 2022, he exchanged text messages with an undercover officer posing as an 11-year-old child, in which he attempted to coerce and entice the assumed child into sexual contact with him. Macko arranged to meet the child in a state park in Western Massachusetts, where he intended to perform sexual acts on the child in a cave. On December 9, 2022, Macko left his home in North Adams in order to meet the child and was arrested shortly thereafter, carrying with him candy, liquor, and a length of rope.
United States District Judge Anne M. Nardacci will sentence Macko on July 28, 2023. Macko faces at least 10 years and up to life in prison, a maximum fine of $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the Colonie Police Department and the New York State Police. Assistant United States Attorney Benjamin S. Clark is prosecuting the case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
West Virginia doctor charged with illegal prescribing, destroying evidenceRead the Press Release
CLARKSBURG, WEST VIRGINIA – A West Virginia doctor has been indicted for the unlawful distribution of controlled substances and for destroying evidence of his alleged crimes.
David Elwood Hess, 59, of Bridgeport, West Virginia, was indicted today on twenty-five counts of improper prescribing and one count of destroying records in a federal investigation. According to court documents, Hess wrote prescriptions for Adderall, Xanax, Oxycontin, and other controlled substances to individuals without a legitimate medical purpose and beyond the bounds of professional practice. The indictment also charges Hess with remotely wiping his iPhone after it had been seized by law enforcement.
“Adderall is the chemical cousin of methamphetamine and a very powerful stimulant,” said United States Attorney William Ihlenfeld. “Given its high potential for misuse, medical practitioners must be cautious when prescribing it and when they are not, there will be consequences.”
Assistant U.S. Attorney Andrew Cogar is prosecuting the case on behalf of the government.
The Drug Enforcement Administration investigated.
An indictment is merely an allegation, and the defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Valley, Alabama Tax Preparer Sentenced to Federal Prison for Filing False Tax ReturnsRead the Press Release
Montgomery, Alabama – Today, United States Attorney Sandra J. Stewart announced that Christina Prather Williams, 42, from Valley, Alabama, received a sentence of 20 months in prison for preparing false federal tax returns.
According to court records and statements made in open court, Williams operated a tax preparation service in Valley, Alabama, “Family Tax Service,” where she prepared federal income tax returns for clients. Some of Williams’s clients complained to the Valley Police Department that they never received their tax refunds. The Valley Police Department’s investigation revealed that Williams had forged power of attorney forms in her clients’ names and cashed their refund checks, keeping the money for herself. The Valley Police Department reported its findings to the IRS. During its own investigation, the IRS determined that Williams had indeed prepared and filed false tax returns that included deductions her clients were not entitled to claim. In light of this conduct, on June 8, 2022, Williams was indicted.
In her plea agreement, Williams specifically admitted to filing for two individuals 2018 returns containing numerous false claims. In one return, filed in March of 2019, Williams claimed that a client incurred solar electric and water heating property costs, medical and dental expenses, home mortgage interest and points, and gifts to charity totaling $39,887.00. Williams also admitted to filing a return for another customer in April of 2019 that falsely claimed the same types of expenses, plus child and dependent care costs, in the amount of $42,841.00. Williams included all of these expenses in her customers’ returns despite knowing that the customers were not entitled to claim the expenses. As a result of Williams’ false statements, the IRS paid a larger return to the taxpayers than they were entitled to receive.
In addition to the 20-month prison sentence ordered on April 3, 2023, Williams will also serve one year of supervised release and is required to pay the IRS $76,694.00 in restitution.
“Tax preparers are entrusted to complete their clients’ returns using accurate and legitimate tax information,” stated United States Attorney Stewart. “Unfortunately, some paid tax preparers falsify information to make more money for themselves. I applaud the Valley Police Department and the IRS for investigating this case and stopping these crimes against the American taxpayer.”
“Christina Williams used her position as a tax preparer to defraud her clients and the U.S. government and will now be held accountable,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “As this year’s tax season comes to a close, this is a timely reminder for taxpayers to review their returns carefully before signing and submitting them to the IRS. IRS Criminal Investigation will continue to investigate and recommend prosecution of dishonest tax preparers.”
The IRS’s Criminal Investigation Division and the Valley Police Department investigated this case. Assistant United States Attorney Megan A. Kirkpatrick prosecuted the case.
Three South Jersey Men Charged with Conspiracy to Commit Bank FraudRead the Press Release
CAMDEN, N.J. – Three men from southern New Jersey were charged with negotiating fraudulent checks with forged signatures, U.S. Attorney Philip R. Sellinger announced today.
Eugene O. Koranteng, 30, and Emmanuel S. Yirenkyi, 28, both of Maple Shade, New Jersey, and Misty Sarfo-Adu, 28, of Deptford, New Jersey, are each charged by complaint with one count of conspiracy to commit bank fraud. They are scheduled to appear by videoconference today before U.S. Magistrate Judge Sharon A. King.
According to documents filed in this case and statements made in court:
Koranteng, Yirenkyi, and Sarfo-Adu conspired to commit bank fraud by obtaining blank checks containing the names and account information of unsuspecting customers of a credit card company. They made the checks payable to members of the conspiracy, forged the customers’ signatures on the checks, and negotiated the checks at financial institutions. In July 2018, Sarfo-Adu messaged Yirenkyi a photograph of four blank checks with the account information of a customer of the credit card company. One of the checks was then made payable to Koranteng for $8,750 and deposited into Koranteng’s bank account. Another one of the checks was made payable to another conspirator for $8,750 and deposited into that conspirator’s credit union account. Members of the conspiracy also deposited other fraudulent checks using other customers’ credit card account information into the same accounts belonging to Koranteng and the other conspirator.
The count of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a fine of up to $1 million.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to the charges. He also thanked the U.S. Postal Inspection Service, the Burlington County Prosecutor’s Office, the Camden County Prosecutor’s Office, the Moorestown Police Department, the Mount Laurel Police Department, and the Champlin, Minnesota, Police Department for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
yirenkyi.complaint.pdf
sarfoadu.complaint.pdf
koranteng.complaint.pdfThree People Plead Guilty, Four More Charged with Conspiracy to Commit Wire Fraud in Connection with Telemarketing Scheme Targeting Timeshare Owners over the Age of 55Read the Press Release
CAMDEN, N.J. – Seven people have been charged for their participation in a telemarketing scheme to defraud timeshare owners over the age of 55, U.S. Attorney Philip R. Sellinger announced today.
William O’Hanlon, 58, and his wife Karen Stefanowski, 60, of Miami, Florida, James Toner, 41, of Lake Mary, Florida, and William Chiusano Jr., 48, of Laguna Niguel, California, are each charged in a 13-count indictment with one count of conspiracy to commit wire fraud, and multiple counts of wire fraud. O’Hanlon is additionally charged with three counts of tax evasion and one count of theft of government monies. O’Hanlon, Stefanowski and Toner were arrested today, made their initial appearances in federal court in Florida, and were released on bail.
Alex Klemash, 30, of Williamstown, New Jersey, Michael Lambe, 43, of Mullica Hill, New Jersey, and La’Tresa Jackson, 57, of Lindenwold, New Jersey, pleaded guilty on March 8, 9, and 13, 2023, respectively, before U.S. District Judge Karen M. Williams in Camden federal court to related informations charging them with conspiracy to commit wire fraud in connection with the telemarketing scheme.
According to documents filed in these cases and statements made in court:
The wire fraud conspiracy and wire fraud charges arise out of the defendants’ alleged participation in a timeshare fraud scheme operated through businesses Williams Andrews Burns LLC, Resort BnB Inc., and Williams & Burns Inc., collectively referred to as “WAB.”
From October 2016 through October 2020, the defendants and additional conspirators engaged in a scheme to financially enrich themselves by selling fraudulent services offered through WAB to timeshare owners, including offering to rent or buy the owners’ timeshares under false and fraudulent pretenses or representations, and offering to recover monies timeshare owners had previously paid in connection with other scams. The conspirators obtained lists of timeshare owners and their contact information, and cold-called them to pitch their various services in return for upfront fees.
The conspirators made numerous false and misleading statements to the timeshare owners, including falsely stating that the timeshare owners had “bonus” timeshare weeks which WAB would rent for them in return for an upfront fee, and falsely guaranteeing thousands of dollars in rental income for the timeshare owners. Once the timeshare owners had signed up and paid their fees for the phony rental services, the conspirators also generally pitched collections/recovery services, offering to obtain refunds of monies previously paid by the timeshare owners in other fraudulent scams, in return for fees. The conspirators made numerous false and misleading statements in many instances to both timeshare owners and their credit card companies.
One of the fraudulent pitches used by the conspirators was to falsely claim that the timeshare owner had been identified as a victim of timeshare fraud and was entitled to monies that were held by a government entity, often referred to as the attorney general’s office or the Federal Trade Commission (FTC), and that WAB would obtain those monies for the timeshare owner in return for the payment of an upfront fee. The conspirators also offered additional fraudulent services to timeshare owners, including occasionally offering timeshare buyouts/takeovers.
O’Hanlon ran WAB with the assistance of supervisors Toner, Klemash and Lambe in New Jersey, and Chiusano in California. O’Hanlon and the supervisors also engaged in telemarketing sales, as did Jackson, and Stefanowski was the bookkeeper/controller responsible for drafting checks drawn on the victim timeshare owners’ bank accounts.
Each count of conspiracy to commit wire fraud and wire fraud are punishable by a maximum of 30 years in prison, including an enhancement of up to 10 years in prison for committing such fraud via telemarketing that targeted persons over the age of 55 and victimized 10 or more people over the age of 55. O’Hanlon is also charged with three counts of tax evasion, punishable by up to five years in prison, and one count theft of government monies, which is punishable by up to 10 years in prison. The sentences on each count may run consecutively. Each offense also carries a potential fine of the greater of $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Sellinger credited special agents of the FBI’s Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; special agents of the IRS Criminal Investigations, Newark Field Office, under the direction of Acting Special Agent in Charge Tammy Tomlins; and special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge, Cooperative Disability Investigations – Eastern Region, Conor Washington, with the investigation leading to the indictment, arrests, and guilty pleas.
The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Elisa T. Wiygul of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
ohanlonetal.indictment.pdf